Yes, in the short-term payments for a lease are lower than when you finance. This is because with financing you are essentially paying for the full value of the car, plus any interest over the term because you won’t be returning it. With a lease agreement, you are only paying the depreciation of the vehicle because at the end of the contract, you’ll be either returning the car to the dealership who can sell it at fair market value, or you’ll be buying it out yourself at the residual value.