Leasing's most important benefit is getting the use of equipment without reducing capital. Instead, invest cash in areas producing growth, and pay for equipment as used, not in advance. Deducting the entire payment reduces taxes and rental deductions may be superior to, or better timed, than depreciation when the lease is shorter than the depreciable life of the equipment. A lease offers highly flexible terms. The conditions can be tailored to exact requirements.
Inflation lessens leasing costs by decreasing payment costs.
Also, inflation lessens depreciation value and has a negative effect on cash flow when buying equipment, but has a positive effect when leased. This aids in fixing costs more accurately by eliminating hidden costs and providing fixed rate financing.