a provision allowing the customer (lessee) the option to purchase lease equipment for a price sufficiently lower than the expected Fair Market Value so that exercise of the option appears to be virtually assured at the inception of the lease.
A lease provision which gives the lessee the option to purchase the equipment at the end of the lease term for a price set at the start of the lease. This price is usually substantially lower than the fair market value of the item at the date the option can be exercised, and is often as low as ten dollars
An option given to the lessee to purchase the equipment at a price that is fixed sufficiently below the expected fair market value, so that, at the inception of the lease, purchase appears to be reasonably assured.
A provision in the lease language which allows the lessee, at its option, to purchase the equipment sometime during or at the end of the lease term at a price sufficiently below fair market value such that it is a reasonable certainty at the inception of the lease that the lessee will exercise the option to purchase the equipment. The presence of a bargain purchase option will generally cause the lease to be characterized as a capital lease.
A lease provision allowing the lessee at the end of the lease to purchase the leased property for a price lower than the property's Fair Market Value (FMV) provided the lessee has complied with their responsibilities under the lease.
A lease provision allowing the lessee, at its option, to purchase the equipment for a price predetermined at lease inception, that is substantially lower than the expected fair market value at the date the option can be exercised.
A lease provision allowing the lessee, at its option, to purchase the leased property at the end of the lease term for a price that is sufficiently lower than the expected fair market value of the property.
A renewal option that will, as a certainty, be exercised because the consideration to be given for the purchase is so nominal as to be insignificant.
An option allowing the lessee to purchase the leased asset at the end of the lease term for a price that is fixed substantially below the expected "fair market value", such that, at the inception of the lease, purchase appears to be reasonably assured.
A lease provision allowing the lessee, at its option, to purchase the leased equipment for a price sufficiently lower than the fair market value of the property, such that the exercise of the option appears, at the inception of the lease, to be reasonably assured. If this is truly an option, then it is considered to be a Conditional Sales contract.
An option given to the lessee to purchase the equipment on lease at a price that is less than the expected fair market value so that, at the inception of the lease, it is reasonable to assume that the lessee will definitely purchase the equipment on the option date.
Gives the Lessee the option to purchase the equipment at a price below the fair market value upon lease termination.
An End-of-Term option that allows Lessee to purchase the leased equipment substantially below the expected Fair Market Value.
Similar to a purchase option, it is a provision in a lease giving the lessee the right to purchase the leased property for a price less than its anticipated fair market value. This term is most often used in connection with classifying a lease for accounting purposes.
