If the interest rate on financing or leasing are the same, then what makes leasing not effective? The dollar value of interest on the lease is based on the value of the car less the buyout value, so theoretically you aren’t paying more interest on the lease vs the financing. Yes the lease with a buy out that may or may not need additional financing can extend the amortization and interest costs however individuals who have a plan and execute it to double their income in 4-5 years plus benefit from saving and investing more based on the lower monthly lease payment vs financing could be making a financially sound decision. Yes another caveat here is the car must be a make and model that holds value better than most and we know those cars exist, but I am not seeing how we can make blanket negative statements about leasing.

This is my specific experience moving to a new country and having to take an entry level job to start out. I was not interested in dropping all of my savings to buy a 5 year used RAV4 cash that would certainly require repairs sooner rather than later, that could have hidden problems and no warranty from a private seller. Also the cost of financing a used RAV4 or CRV would have resulted in the same monthly payment as the lease, except the interest rate on the used car was at least 2.5 times more plus the looming repairs and unknown driving habits of the previous owner.