Renting - Leasing

Leasing

Long term rental of personal property (for periods longer than a year) is known as leasing. Leasing is usually used for high-value capital equipment, both in business and by consumers (particularly for cars). A leasing agreement which transfers most of the risks and rewards of ownership, usually for the life of the asset, is known as a finance lease. A leasing agreement which is not a finance lease is known as an operating lease.

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