Fair Market Value (FMV) Lease
If you want to enjoy new equipment without worrying about trade-in values--and if you want maximum cash flow--you should consider an FMV (Fair Market Value) Lease.
The FMV Lease is available on new International® trucks and tractors and is recommended when ownership and depreciation benefits are not desired. You aren’t responsible for your equipment’s residual value at the end of the lease term and you will have several choices offering maximum flexibility.
Here’s how FMV leasing can work for you. Negotiate your best deal on the sales price of the vehicle and then agree on the term of the contract.At expiration you will have three options:
- You may purchase the vehicle at the present Fair Market Value
- You can renew the contract for a stated length of time at the present Fair Market Value Rental
- You can return the vehicle within stated terms and conditions and have no further obligation
- Lower or zero down payments--only one rental payment is typically required in advance--so only minimal initial investment may be required
- Fixed monthly payments are lower than traditional financing
- There are potential tax advantages, since the full monthly rental payment may be tax deductible
- Receive "options vs. obligations" at lease expiration