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A Fair Market Value (FMV) lease is one of the two common types of traditional lease options, the other being the $1 Buyout Lease. An FMV lease does not automatically result in ownership after all payments are made. Therefore its monthly payment may be considered a fee for usage. If ownership is desired at end of term, an additional "fair market value" buyout amount must be negotiated and paid at that time, otherwise the equipment must be returned to the leasing company.
One common misconception is that an FMV lease is inherently an operating lease (OPEX). From an accounting perspective, some FMV’s may qualify to be treated as an OPEX lease, but not all will. Consult with your accountant to determine the appropriate accounting treatment of an FMV lease.