The depreciation component of a lease payment is “to compensate the leasing company for the monetary value the car loses during your lease”.
Lease payments have two segments: depreciation and interest. The depreciation partition takes care of the depreciation expense of the hardware over the rent term.
The depreciation part is determined as the underlying parity on the rent, which is the balanced promoted cost, short the end estimation of the rent, which is the leftover esteem, isolated by the term of the rent. The depreciation part may be known as the “depreciation charge” or just “depreciation.”