Types of Leases

There are three basic types of leases and each offers its own advantages.  By speaking with one of our representatives, you can determine which is right for you.

Fair Market Value

This is a traditional lease, sometimes referred to as a Tax Lease or True Lease.  It is an excellent choice for equipment you think will lose its value over the course of the lease.  At the end of the term, you can choose to purchase the equipment for its fair market value, renew the lease, or return the equipment.  This type offers the lowest monthly payment.

$1 Buyout

This is an attractive option for equipment you know you want to keep at the end of the lease.  Once the term is up, you “buy” the equipment for $1.  As with all leases, you can include all costs in this lease… equipment, sales tax, freight, and training.

PUT

These leases are a hybrid.  They provide a lower payment than the $1 buyout, but you are obliged to buy the equipment at the end.  Purchase Upon Termination options are typically done at 10% of the original cost of the equipment. 

There are many options in the leasing world from length of term (usually 2-5 years) to buyout options.  Call us today to determine which is right for you.