Net advantage to leasing

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.
References in periodicals archive ?
The model of computing the net advantage to leasing, ignoring maintenance costs and salvage value, is the same in four of the five textbooks reviewed, with Van Horne's text being the exception.
The analysis procedure is referred to as the Net Advantage to Leasing (NAL).