Write the difference between leasing and financing.

The major differences between leasing and financing are as follows −

Leasing	Financing
Legal agreement between lessor and lessee. Ownership is with lessor. Principal and interest component is considered. Risk is with lessor. Very affordable. We can use the asset. Monthly payments are low. Choice of buy the asset or return to the lessor is available.	Partial amount is paid to buy the asset. Ownership is with the borrower. Down payment or instalments are considered. Risk is with borrower. Restricts affordability. We can own the asset. High monthly payments, when compared to lease. Own the asset after fully payment is made.