myampac.com
Click To Chat

Purchase Options


A purchase option at the end of a lease allows companies more flexibility to accommodate any changes to their circumstances over the term of the lease. It gives them the opportunity to choose at the end of the lease term to purchase the equipment, renew the lease, or return the equipment. For more information, please listen to our podcasts, Purchase Options and Benefits of Leasing.


American Packaging Capital, Inc. offers three Purchase Options to help companies meet their equipment needs, business goals, and cash flow requirements:

Fair Market Value Purchase Option (Operating Lease)

The lessee has the option at the end of the lease term to choose to purchase the equipment for its Fair Market Value. Also known as an operating lease, this can be an attractive option for customers who want to use the equipment without ownership or are expecting a decrease in the equipment's value.

  • Fixed, predictable monthly payments.
  • Preserves cash flow and bank lines of credit for operations, real estate, or other capital expenditures.
  • Can greatly reduce the Cost Recovery Period for equipment. (To learn more, view our Justify This Project video.)
  • Lease payments are charged to Operating Budget, avoiding Capital Budget constraints.
  • Lease payments are generally lower than all other financing options - and are 100% deductible against taxable income.
  • Operating Leases are Off-Balance Sheet transactions and improve most financial ratios, including ROA, ROI, and Debt/Net Worth measurements.
  • Operating Lease payments are not an Alternative Minimum Tax (AMT) item.

$1.00 and 10% Purchase Option Leases (Capital Leases)

$1.00 Purchase Option:

The lessee has the option at the end of the lease term to choose to purchase the equipment for $1.00.


10% Purchase Option:

The lessee has the option at the end of the lease term to choose to purchase the equipment for 10% of the original equipment cost.

Also known as capital leases, the $1.00 and 10% purchase options are an attractive option for companies that want the tax benefits of ownership or expect the equipment residual value to be high.

  • Fixed, predictable monthly payments.
  • Preserves cash flow and bank lines of credit for operations, real estate, or other capital expenditures.
  • Can greatly reduce the Cost Recovery Period for equipment. (To learn more, view our Justify This Project video.)
  • Generally treated as a booked asset and liability on financial statements.
  • Fully depreciable for tax purposes (under MACRS.)

Go to Top