More equipment is financed today by leases than by bank loans, private equity or any other method of asset financing. Leasing is a versatile financial instrument which allows for almost any asset that can be purchased to also be leased.
Financial decision-makers are recognizing that earnings are derived from the use of an asset and not from the actual ownership of that asset. Capital is a valuable commodity and often the benefit from investing into one’s own working capital or a class of asset that appreciates derives an exceeding return than the effective cost of leasing.
Hence the cliché that was coined “buy what appreciates and lease what depreciates”