Drilldo - 3/29/2017 15:35

I guess if you are trying impress your banker it could make sense as you described. I don't borrow money so I don't care about that.

OK I will cut you some slack since you don't borrow money you don't understand how leases work. They charge an interest rate just like the local bank does on a normal purchase...that is where they make their money. It is not because the value of the piece is worth more at the lease termination than what the residual amount is (buy out). As a LEASEE you have the option to buyout the lease at anytime so in the strange event that the piece is worth more at the end than what the buyout is then buy it. With a lease you are only paying for the portion that you use.