Many lease agreements include the option for the lessee to purchase the property being leased. We offer three buyout options you may choose from to include in your lease agreement. The three options are:
1. At the end of the lease for a preset amount. This option allows the parties to include the so-called one dollar buyout provision where the lessee purchases the property for one dollar upon the expiration of the lease term; its an effective way to make a lease act as an installment purchase agreement. Of course, the price doesnt have to be one dollar; you may enter any predetermined purchase price you see fit.
2. At any time during the lease for a preset amount. Like the option above, this buyout provision allows the parties to agree in advance what the lessee must pay to purchase the property, but gives the lessee the flexibility to make the purchase at any time during the term of the lease.
3. At the end of the lease for the fair market value. This buyout option is useful when neither party is certain what a fair purchase price of the vehicle will be at the end of the lease. Using this valuation method sets the price equal to an amount as reported in trade valuation books such as Kelly Blue Book. Whatever amount is shown in such trade valuation books will be the one the lessee must pay to purchase the property at the end of the lease.