With a good lease, that is low lease factor, lenient mileage, low up front fee, low end of lease fees, optimally a high residual (assuming you aren't buying the vehicle at lease end), etc., leasing is financially no different than purchasing. To explain, remember that a lease is only financing the decrease in value of the vehicle over the term of the lease. In other words, if you pick a three year lease w/ a high residual value, then for 36 payments, you are paying the depreciation in the vehicle (plus the interest: ie the lease factor). So, if you finance a purchase for three years, add up 36 payments, add in the loss of interest you would have accrued on your down payment, sales tax, etc, etc. then subtract the value of the car after three years, you arrive at the cost of ownership for three years. Take your lease payment X 36, add the money down (and loss of interest), plus the return fees and you arrive at the cost of ownership for 3 years. With a good lease, these two figures are about the same. This was explained to me by my banker neighbor (and of course they make their money on loans), and these scenarios have been seriously number crunched. You have to realize that when you lease, the vehicle is actually sold to a leasing company, so at the end of lease they wholesale it at the value that was predetermined. Thus, they make their money on the so called lease factor (interest). The dealer makes a small profit on the sale to the leasing company.