A provision by which a lessee has the right to purchase the equipment (usually at the end of or close to the end of the lease). The purchase option may be stated at a specified amount or at fair market value.
The amount that the Lessee may purchase the vehicle for at the end of the lease, provided there are not late fees or other fees not paid during the lease. The purchase Option may differ from the Residual Value depending on how the Lessor wishes to treat this option.
A provision in the lease that gives the lessee the right to purchase the equipment at the end of the lease for either a predetermined amount or its fair market value, which is determined at the end of the term. Renewal Option The option to renew a lease contract for a specific incremental period of time. After the expiration of the initial lease term.