Types of Leases Fair Market Value (aka FMV Lease): - Most widely-used lease option
- Offers lowest monthly payment of all lease types
- Offers 100% financing
- Offers tax and balance sheet advantages (Consult your tax advisor.)
- Flexible end-of-term options
Fixed Price Purchase Option (aka FPPO): - Generally same terms and conditions as the FMV Lease
- May have slightly higher monthly payments than the FMV lease but lower than a Capital Lease
- Offers 100% financing
- Flexible end-of-term options
- Purchase equipment for the preset purchase price of 10% of the original equipment cost
- Continue to pay month-to-month until decision is reached
- Return the equipment
$1.00 out Capital Lease: - Offers 100% financing
- Defined path-to-equipment ownership
- May be able to deduct interest expense and depreciation on equipment. (Consult your tax advisor.)
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