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He paid 7 security deposits to lower the money factor (number used to calculate the interest paid over the duration of the lease). You get the 7 security deposits back at the end. It only makes sense to do if you can't earn a certain interest rate on the open market. Basically you need to calculate out how much money you'd save over the the duration of the lease and compare that to what you could have earned with the same amount of money invested in a mutual fund, stocks, etc. In a down economy, you might end up "making" more money by paying the 7 security deposits up front... but then again, you actually have to have the money available to do it.
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