Why do leasing companies say that there is no interest in a lease?
If there was interest in a lease, then a portion of each lease payment would go toward interest, and the rest of it would go toward principal. Every time you made a payment, you would reduce the remaining principal balance. This is called an amortization schedule. It shows how much equity you have earned by gradually paying down the principal. But this is not true for a lease. The lease payments are not composed of interest and principal. They are just rent, and you do not earn any equity during the lease.

Can I pay the lease early without a penalty?
There is no penalty when you pay a lease early. But, unless the leasing company offers a prepayment discount, there is no advantage to paying early. Leasing companies are not obligated to offer prepayment discounts, but some will.

CapStar has several leasing programs that offer generous discounts for early payoffs. Some of these can even be pre-negotiated in writing. If you are concerned about early payoff discounts, discuss it with your CapStar lease manager so we can select the best program for you.

Should I lease or go with my bank?
Here’s a good story about a guy that chose not to lease.

So He Went With the Bank (pdf file 64kb)