Vanguard Capital Partners - Types of Leases

Types of Leases

Leasing equipment is easy and flexible. With different payment structures and end of term options to choose from, Vanguard Capital Partners can structure a lease to fit your exact business needs. Our experienced and creative account executives will help you decide which program is right for you. Or you can decide for yourself by reviewing the types of leases listed below. They will help you determine what option you need and what works best for your company.

END OF TERM OPTIONS

Fair Market Value(or FMV lease)
This is a good option for businesses that expect the value of their equipment to decrease quickly, want to maintain low monthly payments, or will want to upgrade their equipment at the end of their lease. With the FMV lease, you have the option at the end of the lease to return the equipment, lease it for another year, or purchase it for the equipment's Fair Market Value. With this lease, you may get to write off 100% of the rental payments as an operating expense. Of course, you should consult your accountant about the tax treatment for your company.

10% Purchase Option
This plan is particularly attractive to customers who are uncertain about purchasing the equipment at the end of the lease but want the advantage of a fixed purchase price and a lower monthly payment. Like a fair market value lease, this plan also offers various end-of-lease options.

$1.00 Purchase Option
For those who are certain they want to purchase the equipment at the end of the lease term, this is the recommended plan. After all lease payments have been made, the customer can simply purchase the equipment for $1.00. This plan may not be available in certain states.