When you lease a car or vehicle, you pay only a portion of a vehicle’s cost, which is the part that you “use up” during the time you’re driving it. Leasing is a form of financing and is not the same as renting. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don’t pay when you buy or purchase a vehicle. You make your first payment at the time you sign your contract - for the month ahead. At lease-end, you may either return the vehicle or purchase it for its depreciated resale value. In some cases, you may be charged a lease-end disposition fee at the end of the lease.