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$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 compa#A00325 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.