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Leasing Term #190: Mutually Agreed to Fair Market Value

At the end of the initial equipment lease term, the lease contract may provide the customer with an option to purchase the equipment for the “mutually agreed to fair makret value.” The “mutually agreed to” does not mean a two-way discussion with the leasing company. You can take steps to negotiate a fair price and avoid an automatic lease renewal and extra fees.

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• About Mary A. Redmond

  Mary speaks, consults and writes nationally on the subjects of equipment leasing, entrepreneurship and negotiation skills. She is a contributing editor for industry and trade magazines, and is active in professional groups including the National Speakers Association. For additional information, please visit www.LeaseSpeak.com

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