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:
$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.
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.