Equipment Leasing Companies » fmv

Fair Market Value Purchase Option

Celso — Thu, 05 Nov 2009 00:14:42 +0000

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)

Celso — Thu, 05 Nov 2009 00:11:46 +0000

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 is not known until the lease is over. At that point, the funding source will research blue book values and call dealers to come to a value conclusion.

Capped Fair Market Value

Celso — Wed, 04 Nov 2009 23:38:26 +0000

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.