Net advantage to leasing

(redirected from Net Leasing Advantage)

Net advantage to leasing

The net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset.

Net Advantage to Leasing

The difference between the cost of leasing an asset and the cost of borrowing funds to buy it, where the cost of leasing is less. When calculating whether there is a net advantage to leasing, one takes into account the present value of the funds, the cost of capital, the useful life and depreciation, and so forth.