Leasing is a financial arrangement where one party, the lessee, pays to use an asset owned by another party, the lessor, for a specified period. This arrangement is common for items like cars, equipment, and real estate. The lessee typically makes monthly payments and may have the option to purchase the asset at the end of the lease term. Leasing allows individuals and businesses to access expensive items without the upfront costs of buying them outright. It can be beneficial for maintaining cash flow and keeping up with the latest technology or models, as seen with automobiles and office equipment.