What exactly is a Fair Market Value Lease?
![leasing_guide_new leasing_guide_new](https://sp-ao.shortpixel.ai/client/to_webp,q_glossy,ret_img,w_300,h_346/https://providencecapitalfunding.com/wp-content/uploads/2017/12/leasing_guide_new-300x346.png)
Have you started to look for Equipment Financing or Leasing and gotten confused by all the different words thrown out there. Words like Fair Market Value, Capital Lease, 10% Buy-outs and other confusing terms?
Securing capital for an equipment purchase is a tedious task in itself. When you throw in some confusing complicated terms, it can become a headache quick.
So what exactly is a fair market value lease?
A fair market value lease is an buyout option that is presented to you at the end of a lease term. FMV leases typically have the lowest monthly payment option because the buyout option is typically more costly than other options like $1 buy outs. Why do they call it a FMV? At the end of the lease term, the amount needed to buy out and purchase the equipment would be the Fair Market Value of the equipment. They determine this by using a complicated method that would bore us all to death.
Get our Free Guide
If you want to get a better understanding of the types of leases there are out there, check out our Beginners Equipment Finance and Lease guide!
In our Guide, you’ll learn:
- How exactly are lease rates determined?
- What advantages and disadvantages are there to Equipment Financing
- A complete breakdown of the Finance Process from start to finish
- Most common obstacles that arise when trying to get financing in place
- What to look for in a good Equipment Finance company.
Receive the guide now!
Just fill out this form to download: