The finance lessor doesn't always benefit from timing gains
when all the variables are taken into account. Even where the
lessor can afford to make lower charges than a lender, leasing
isn't always better than borrowing for the user of an asset. Where
the user is a tax payer they are interested in a 'net present
value' comparison of the cash flow effects for it of the leasing
and borrowing options available. One obvious point is that a
tax-paying borrower gets the cash-flow benefit of the capital
allowances.
