Purchase Options
Lease Corporation of America utilizes standard and specialized options for our customers. In this section, we’ll briefly discuss lease-end options and their benefits. For more information, you can download more in-depth educational materials on LCA’s Resources page or contact your LCA Account Executive at 800.800.8098.
Standard Options:
- $1.00 Buyout: This option is recommended to customers who want to purchase the equipment at the end of the lease term. At lease end, the customer purchases the equipment for $1. A customer would choose this option because he/she wants to own the equipment at lease end.
- 10% Buyout: This option targets customer who want a fixed purchase option. At lease inception, the buyout total is fixed at 10% of the equipment’s original cost. A customer would choose this option because he/she is unsure about owning the equipment; the 10% Buyout provides a ‘middle ground’ payment between a $1 Buyout and FMV Option.
- Fair Market Value (FMV) Option: This option allows the customer to purchase the equipment at the end of the lease at its then Fair Market Value. A FMV lease has a lower monthly payment than the $1 and 10% buyouts, but more principal remains at lease end. A customer would choose this lease if he/she has concerns about equipment obsolescence and plans to return the equipment at lease end.
- 10% Pre-Paid Option: This program is designed to offer a lower monthly payment and the comfort of a fixed purchase option. By pre-paying 10% of the equipment cost, it guarantees a lower monthly payment without a large buyout cost (10%, FMV) at lease end.
Specialized Options:
- Municipal: LCA can help you secure municipal leases. We offer competitive rates on leases for tax-exempt, taxable municipals and qualified 501(c)(3) organizations. You can access our Municipal brochure on our Resources page.
- Deferred Payment: The lessee can eliminate his/her down payment for a 60 to 90 day window before the first lease payment is due.
- Zero Down Lease: The lessee takes possession of the equipment with no down payment and the first lease payment is deferred for 30 days.
- Step Payments: Step payments help newer businesses by establishing a lower monthly payment at lease inception and increasing the monthly payment at predetermined intervals over the life of the contract.
- Seasonal Payments: LCA tailors this program for lessees who have interrupted cash flows due to the seasonal nature of their business. Under this program, lease payments are paid only during months the business operates and/or generates cash flow.
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