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    Is leasing more expensive and more desirable than owning?

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    It has been argued that leasing is almost always more expensive than borrowing and owning. Do you think this is true? Why or why not? Under what circumstances is leasing likely to be more desirable than direct ownership

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    It has been argued that leasing is almost always more expensive than borrowing and owning. Do you think this is true? Why or why not?

    The statement above is true. In a lease, the customer must make a lease payment each year. These lease payments are fully tax deductible, so the after-tax lease payment would be a cost of leasing instead of buying. In addition, in leasing, the customer does not own the leased equipment and cannot depreciate it for tax purposes. Therefore, the customer loses the valuable tax shield of the equipment if it leases, which is a ...

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    It has been argued that leasing is almost always more expensive than borrowing and owning. Do you think this is true? Why or why not? Under what circumstances is leasing likely to be more desirable than direct ownership

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