Before You Sign

Before you sign a fair market value lease

What it gives your firm, what to watch for, and how to keep the end-of-term decision yours.

Scroll to see your options
Four Paths at End of Term

The decision stays yours, not the lessor's

OPTION 01
Purchase
Buy it at current market value.
OPTION 02
New Term
Extend for a new term.
OPTION 03
Month-to-Month
Keep using it, no new commitment.
OPTION 04
Return
Give notice and hand it back.

The upside

  • Lower payments.Pay for what you use.
  • Refresh on time.Return aging gear, upgrade to current.
  • Capital stays free.Keep working capital earning in the firm.
  • Decide in real time.Make the call when you have the full picture.

What to watch for

  • Unfair end-of-term value.Some set the buyout well above what the equipment is truly worth.
  • Auto-renewal clauses.Many renew unless you give written notice in the window.
  • Return fees at new-product prices.Some bill damage as new replacement, not age-equivalent value.
The One Tip That Removes the Uncertainty

Review the specifics of the FMV structure up front. Guardrails from day one remove the surprise.

Know the Difference

FMV lease vs. $1 buyout

Fair Market Value Lease

Best for assets that age quickly
Monthly PaymentLower
Ownership at EndOptional
End-of-Term PathReturn, renew, or buy

$1 Buyout Lease

Best for long-life assets you keep
Monthly PaymentHigher
Ownership at EndAutomatic
End-of-Term PathYou own it

Tax and accounting treatment depends on each transaction. Confirm with your tax and accounting advisors.

See exactly where you stand

Our complimentary Lease Cost Analyzer is an unbiased review that surfaces hidden fees and unfair end-of-term costs.

Connect with CoreTech
info@coretechleasing.com