Types of Leases

What types of leases are there? 

We have you covered below are descriptions  of the three most popular lease types: Fair Market Value, 10% Purchase Option and $1 Purchase Option

Fair Market Value

Generally offers the lowest monthly payment, since the structure is specifically designed to attract customers looking to avoid technological obsolescence. The lessee will make smaller monthly payments, and at lease termination, the equipment purchase will be assessed at a “fair market value.” 

10% Purchase Option

Provides a middle ground for monthly payments. The lessee’s payment will, typically, be slightly higher than an FMV rate, but at lease termination, the lessee must pay a pre-determined buyout price of 10% of the total equipment cost.

$1 Purchase Option

While the lessee’s payment will be noticeably higher than FMV & 10% purchase options, at lease termination, the lessee essentially owns the equipment, purchasing it for $1. This type of lease is for customer’s looking to own equipment at end of lease