Lease Purchase Options
Lease purchase
options are determined at the inception of the lease
transaction. Depending on the specific needs of the
equipment user (lessee), the lease is structured with one of
the following types of options at the end of the lease term.
Fair Market
Value (FMV) Purchase Option
At the end of the
lease term the end-user (lessee) has the following options:
-
Purchase the
equipment for the fair market value
-
Return the
equipment to the owner (lessor) at their expense
-
Continuing
making the lease payment and using the equipment
-
Extend the
lease for a pre-determined time period and payment to be
negotiated with the owner (lessor).
Fair Market
Value (FMV) Purchase
At the end of the
lease term the end-user (lessee) will be required to
purchase the equipment from the owner (lessor) for the fair
market value.
Fixed %
Purchase Option
At the end of the
lease term the end-user (lessee) has the following options:
-
Purchase the
equipment from the owner (lessor) for a percentage of
the original equipment cost agreed to at the
commencement of the lease
-
Return the
equipment to the owner (lessor) at their expense
-
Continue
making the lease payment and using the equipment
-
Extend the
lease for a pre-determined time period and payment to be
negotiated with the owner (lessor).
Fixed % Payment
Upon Termination (PUT)
At the end of the lease term the end-user
(lessee) will be required to purchase the equipment from the
owner (lessor) for a percentage of the
original equipment cost agreed to at the commencement of the
lease.
$1 Buyout
At the end of the
lease term and upon the payment of all lease payments, the
owner (lessor) will transfer title to the equipment to the
end-user (lessee).
Let Liberty
Leasing Services, Inc.
create solutions that provide the appropriate end of lease
options for your clients dependent upon their individual
circumstances and requirements.
Click here to
contact us
or
submit an
application
and get started today!
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