Tag: fmv

Fair Market Value Purchase Option

A fair market value (FMV) purchase option gives the lessee the option to purchase the equipment on the lease for fair market value, or walk away with nothing. This is also known as a true lease.

Fair Market Value (FMV)

Fair Market Value (FMV) is the value of the equipment at the end of the lease term which is based upon the economic life of the leased property. It is also measured by the average price a person would pay for the equipment at that given time. The fair market value of the equipment on a lease [...]

Capped Fair Market Value

A statement in a lease agreement which states that the lessee can purchase the equipment at the end of their lease term for fair market value, and that the fair market value will not exceed a certain dollar amount or percentage.


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