If leasing is such a bad thing, why is it now widely used elsewhere?
Leasing is fine if the asset has some sort of a value at the end of a lease. As a for instance, a car is normally leased for around three years from new and then sold, for around 40% of its value new - therefore the depreciation can be worked out. If a train is leased until it is only worth scrapping, then it only has scrap value at the end. Leasing isn't fundamentally the issue, what we all forget is that if a train is fixed at a cost of say £20k to then be scrapped purely to meet leasing guidelines, that £20k is being paid for by someone - indirectly the taxpayer or rail traveler. A sensible lease option for when a train is going to be end of life at the end of the lease, is to lease it ot as is done now, and then a final compulsory payment to buy of, say, £100, at which point the operator at the time buys it and then does with it what they wish, primarily scrap it and get the scrap money back to reinvest into services. They could also sell it to heritage lines, community projects, etc, which operators may be more involved with and the operator collects the sale income or donates as they see fit