End of Lease
End of Lease Term
When looking at End of Lease Options you have a few to choose from. For your protection, Connect Lease arranges the end of lease options (buyout or end of term options) and they are determined PRIOR to the inception of the lease, so you have no surprises.
At the end of the original lease term the lessee generally has three options:
- Return the equipment to the Lessor in good working condition.
- Renew the lease for a specific period of time or continue from month to month.
- Purchase the equipment for a predetermined amount or its fair market value (FMV) at that time.
Options that allow our customers flexibility and convenience
Fair Market Value (FMV)
Advantages: Seeking lowest monthly payment, not planning on owning equipment, customer knows obsolescence will lower the equipment value over time.
Disadvantages: Purchase price is open ended.
Our Fair Market Value lease offers our customers at the end of the original lease term the choice to purchase the equipment for its then fair market value (FMV) as defined in the lease agreement, return the equipment to the Lessor in good working condition, or renew the lease.
10% Purchase Option
Disadvantages: Have to pay fixed purchase option at the end of lease term.
With a 10% purchase option our customers have the option to purchase the equipment for 10% of the original cost or at a specific dollar amount, return the equipment to the Lessor in good working condition, or renew the lease.
$1.00 or $100 Buyout
Advantages: Want to own the equipment, or customer knows the equipment will not lose its value or depreciate significantly over time.
Disadvantages: Typically higher monthly payments.
Our customers at the end of lease term have the option to purchase the equipment for $1.00 or $100.00 at the end of a lease and title to the equipment is transferred from the Lessor to the customer (lessee).