leasing

Debt Dictionary -> leasing

Leasing is the act of renting an asset. The leasing is essentially a form of borrowing, and the lender owns the asset while the consumer or business leases it. Two of the most common forms of leasing are apartment leasing (renting an apartment) and car leasing (renting a car, which you have the option to buy at the end of the lease).

The leasing can be financed directly by the lender or by other financial institution. In the case of car lease, you can get a car loan from your bank or directly from the car dealer.

Leasing allows for using an asset without spending lots of money upfront, but in the long run leasing is more expensive compared to buying.