Many finance textbooks contain a discussion of the various aspects of leasing including quantitative analysis techniques to analyze the leasing decision. The point is made that in a lease only the difference between the asset acquisition cost and its residual value at the end of the lease is financed. However, this is misleading since the finance charges are computed on the cost of the asset. This paper explores that issue and provides a comparison to bond pricing techniques. Curiously, there is very little treatment of automobile leasing in the textbooks. The paper expands the discussion by showing two ways that lease payments are commonly computed. The first is a direct application of bond pricing and the second is a lease factor approach which is simplified and doesn’t use compound interest techniques. Both methods are explained and compared. In spite of the differences in computational techniques, the two methods produce similar results.