What is a Lease?
A contract where one party (the lessor) gives another party (the
lessee) the exclusive right to use and possess its equipment for
a specific period of time.
Who can lease?
- Any sole proprietorship, partnership, corporation, or
LLC.
What can be leased?
- New or used equipment needed in a trade or business or held
for the production of income.
What is the term of the lease?
- A lease can be structured for a term of 1 to 5 years.
What are my options at the end of
the lease? - Evans National Leasing
offers two lease buyback options to fit your needs:
$1.00
Buyback (Lease Purchase)
Choose this option and you will own the equipment with nothing
to pay at the close of the lease except for $1.00. The $1.00
buyback allows you to clearly define your costs and manage
cash flow. Also, there may be tax benefits associated with
the $1.00 buyback lease. Talk with your accountant about the
potential benefits under IRS Section 179.
Fair Market Value
(FMV)
This choice allows for two different options. Equipment may
be purchased for the fair market value or returned to Evans
National Leasing with nothing further to pay. The FMV is typically
10% of the original cost of the equipment. The benefits of
the FMV lease are lower monthly payments and potential tax
benefits. Lease payments are often fully deductible as an
operating expense with an FMV lease, so talk with your accountant
about the tax benefits of a FMV lease.
