FAIR MARKET VALUE LEASE
A Fair Market Value lease, also known as an operating lease, is probably what comes to mind when you hear the term “lease.” Commonly utilized when someone leases a car, an FMV lease allows the lessee to use the equipment for a pre-arranged time period for a fixed monthly payment. At the end of the lease term, the lessee has the option to purchase the equipment at its then-determined Fair Market Value, return the equipment, or upgrade to new equipment.
$1 BUYOUT LEASE
A $1 Buyout Lease, also called a capital lease, is similar to purchasing equipment with a loan. With this type of lease, there is a higher monthly payment compared with an FMV lease, but at the end of the lease term, the lessee purchases the equipment for $1. Since it is very similar to taking out a loan on a piece of equipment, this type of lease is often used when a business plans to keep the equipment for a long period of time, or when equipment obsolescence isn’t a concern.
RENT TO OWN
An equipment lease agreement with option to purchase is a type of contract where you and your lessor agree that at the end of your lease term you have the option to purchase the equipment.
Yard Truck Specialists is the authorized dealer for Kalmar Ottawa products in Pennsylvania, and with locations in the western, central, and eastern portions of the state, we are convenient to your location no matter where you do business.