An agreement that allows for portions of lease payments to be used to purchase the leased property.

A rental contract in which the renting party's periodic payments or parts thereof are applied both to fulfill the rental obligation and as installments for eventual ownership of the commodity upon completion of the agreement. See University of Washington Policies & Procedures, Purchasing Department, Procedure 7.3.2.

lease in which the lessee can apply lease payments toward the purchase of the property if he/she chooses to. see also purchase acquisition.

lessor leveraged lease