Fair Market Value Advantages

Fair Market Value (FMV) leases provide protection from obsolescence and inflation, persuading prospects to acquire equipment now.  FMV leases are preferred by customers for their cash flow and tax advantages. FMV leases provide the lowest lease rates, which means the lowest monthly payment for the customer.

Companies choose Fair Market Value (FMV) leases over Finance lease for the following advantages:

• Lowest monthly payment maximizes spending power
• Credit Requirements are lower than for finance leases
• Provides protection from obsolescence and inflation
• In most cases, operating leases do not have to be reported on the balance sheet
• Tax Benefits - Payments are often considered a business expense and may be fully deducted
• Greatest lease-end flexibility
• Continue to lease the equipment at a lower monthly payment
• Upgrade to the latest technology
• Purchase the equipment at the FMV
• Return the equipment with no further obligation

What is Fair Market Value?

Fair Market Value--the dollar amount the equipment can be sold for--is calculated at the end of a lease term.  Since market conditions and technology are very dynamic, predicting the FMV of any piece of equipment isn't possible until the end of the lease term.