Hi Guys. Can someone please explain the whole concept of Sale type leases and direct financing leases. Cant seem to get it…
SALES TYPE LEASE A lease in which the supplier/manufacturer of the product also finances the purchase amount. e.g Toyota selings their cars on 5 year easy installments (no bank or financial institution involved). DIRECT FINANCING In this type of lease the lessor is not the manufactuer and only finances the purchase. For example Barclays Bank providing finance to the buy the Toyota Lexus and you pay the purchase amount in easy monthly installments.