Why is the total cost of leasing greater than the cost of purchasing a device on your own?

You are correct that it costs more to lease a device than to purchase it outright. This is typically true for any lease.

In our case, there are four costs that go into the lease amount. Lets take the iPad Air as an example:

  • $499.00 16GB iPad Air (we may get a quantity discount that could reduce this to $479.00).
  • $116.00 Insurance. This covers accidental breakage and theft for 3 years. 
  • $40.00 Case. We are looking at the Griffen Survivor Series. These retail for $79.99 and get very good reviews from other schools.
  • $159.00 Lease cost. The leasing company we are anticipating working with charges an interest rate of just under 7.5%
  • -----------------------
  • $814.00 Total or $23.00 per month for 36 months

On the bright side, you save over a dollar a month in sales tax :^)