This is a very important question, and everyone should know the basic difference between financing and leasing to see which option is best suited to them. Even though the difference is not that much, there is one fine line that divides the two.
Financing means that you get the money for buying whatever you want and get the ownership of that item immediately.
However, leasing on the other hand means that you do not get to own the device. After a period of time, which is stipulated in the agreement for lease, you have to return the phone back to the retailer.
Financing allows individuals to have full ownership of the device once the final installment has been paid on time. Leasing means you need to return the phone once the final payment is done and the time period stipulated is over.
Knowing the difference between these two will help you determine which option you want. For example if you are looking for something that you can keep for a long period of time, financing is a better option.
However, if you are looking for more flexibility then leasing is a better option since after the time period of lease ends, you can move on to another device of your choice.