What is a finance lease

Companies are slated to spend between $500 billion and $1 trillion a year on the nuts-and-bolts necessary to support artificial intelligence. You drive a lot or put a lot of wear and tear on your car. Most leases cap how many miles you can drive—usually 10,000 to 15,000 per year—and will charge you 10 to 30 cents for every mile you go over your limit. For many people, that’s not enough mileage. Leased cars also have to be returned in good condition as part of the contract, so if you have a messy pet or tend to attract dings and dents, you’re better off buying. Understanding "what is a finance lease" is crucial for bank stock investors, especially when assessing credit exposure. Finance leases often appear in corporate lending portfolios, influencing net interest margins. Current Fed policy hints at stable rates, supporting banks’ leasing income forecasts in the range of 4–6% growth annually.