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Key Advantages of Leasing an Asset

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What are the key advantages of leasing as compared to borrowing to acquire an asset? What are the key disadvantages of leasing?

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Solution Summary

This solution provides a list of the key advantages of leasing an asset as opposed to borrowing to acquire it. The downsides of leasing are also addressed.

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Leasing is generally more expensive than borrowing to buy, and FASB 13 has reduced the availability of off balance sheet financing. Leasing has thus continued to be popular as a result of the following points:

- Down payment normally not required
- Easy credit approval with mfg./lessor
- Little or ...

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