Leasing is a type of financing in which an individual or business rents property, equipment, or other assets from another party for a specified period and payment.
Usage examples
Leasing is a common method of acquiring cars, allowing individuals to drive a vehicle without having to purchase it outright.
Equipment leasing is often done by companies in need of machinery or technology for a specific period, allowing them to access assets without the upfront costs of purchasing.
Some individuals opt for leasing furniture or appliances for their homes instead of buying, particularly when they anticipate moving or remodeling in the near future.
Aircraft leasing is prevalent in the aviation industry, enabling airlines to use an aircraft on lease rather than purchasing one outright, thereby reducing capital expenditure.