End of Lease Options
•$1.00 Buyout- Also called a Capital Lease, this Lease structure combines fixed and lower monthly payments with the right to purchase the equipment at the end of the lease term at a pre-determined price- $1.00 ( available in most States ). If you intend to keep the equipment at the end of the lease, this is your best option.
•Fair Market Value (FMV) Buyout ? Also called an Operating Lease or a True Lease. With an FMV Lease, customers have the option to Purchase the leased equipment for its Fair Market Value ( to be determined at the end of lease) . In addition, you can write off 100%* of the lease rental payments as an expense. This lease option is beneficial for those customers who expect their equipment to decrease in value rapidly, or will want to upgrade their equipment at the end of their lease.
•Fixed Purchase Buyout- This lease has the flexibility of an FMV Lease, with the benefit of having a pre-determined buyout at the end of lease. 10% is the general buyout option.
With FMV and Fixed Purchase Buyout Options, you may do any of the following at the End of Lease:
•Continue Leasing for an extended term OR Return the equipment OR Purchase the equipment
*Please consult with your certified accountant or tax advisor.