What is an FMV lease? FMV stands for Fair Market Value, and in terms of a copier lease in Los Angeles the person or organization who holds the lease decides that number. Doesn’t sound too fair does it? Well, it can be, but it depends on several factors. I need to give a little background information first, however. There are two main types of leases that happen in the Los Angeles copier world.
There is the $1 buyout lease, which I’ll discuss in another article, or the FVM lease. What the FMV lease does is charge you for the use of equipment over the 36 month lease, 48 month lease, or 60 month lease. There may be others but check with the Los Angeles copier company you’re working with. At the end of the lease, the leasing company/copier company will give you a buyout number, or, an amount you can pay for the copier if you love it and want to own it. Since you’ve been essentially paying for the copier all along, this price should be fairly low and adjusted for depreciation of the copier. It will most likely be more if you had a 36 month lease on a new copier, and less on a 60 month lease. The upside and downsides are that you’ll pay more for the first one, and get an older copier with the last one. If you have to pay to ship the copier back (which can be spendy) it may make sense to buy out for a reasonable amount. I hope this clarifies a little the concept of an FMV lease on a copier in Los Angeles!