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Frequently Asked Questions
Buyout/Purchase options are generally determined before the lease begins. They outline your final financial obligations at the end of the lease. The following will give you a complete description of what those options are, and how they will affect you.
Fair Market Value (FMV) Purchase Option
Purchase the equipment for its then Fair Market Value, extend the lease for a pre-determined length of time (of course, this period will be stated in your original lease contract or return the equipment at the end of term. It should be noted that not all contracts feature the latter option, so be sure to check your lease agreement.
Fair Market Value (FMV) Purchase
10% Put Contract
Comparing Purchase Options
Some disadvantages of this purchase option is that it can be somewhat ambiguous and result in a valuation that is high. Access Equipment Leasing generally negotiates this value with our customers at the end of the lease.
A 10% Purchase Option or Put end of lease payment is generally determined at the inception of the lease as either a fixed percentage of the equipment cost or a specified dollar amount. With this option, you must pay the Fixed Put. It is considered a final payment in most cases. The Fixed Put is beneficial if you would like a lower monthly payment and are not concerned about making an additional payment at the end of lease.
The benefit of a $1 Buyout is that the final payment is only a dollar. This generally comes at the expense of a higher monthly payment and a smaller tax benefit.
Some Advice From Access Equipment Leasing
Access Equipment Leasing3972 Barranca Pkwy
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