When you lease a car, it is not yours. Of course, when you finance, it's still not yours until you've paid off the loan. In a lease, the dealer sells the car to the lessor, who may be a bank, and independent leasing company or finance company. You, in turn, pay the lessor for the right to drive the vehicle during the term of your lease. You are still responsible for obtaining insurance and all routine maintenance during the term of your lease.
Cars depreciate the most in the first few years they are on the road.
In a lease, you are paying for this depreciation on a car that will not even be yours at the end of this time period. You also pay interest on the entire amount for the lease term. The interest rate is called the 'money factor' because calling it an interest rate would be too easy to understand. If you don't wish to buy it, you simply walk away. Of course, you have to walk away because you no longer have a car to drive.