Capital Lease Buyout Requirements
If you have an equipment financing agreement that is classified as a capital equipment lease, then you will be required to purchase the asset at the end of the leasing term.
The buyout price will be predetermined at the outset of the lease in terms of a fixed amount that is nominal in nature or it will be based on some form of calculation that will establish the buyout price based on certain factors.
Once the payment has been made by the lessee at the end of the lease term, the lessee will become the owner of the asset and will have no more equipment lease obligations.