Comment Re:Subscription, or lease? (Score 1) 54
Commercial leases are often FMV or $1 buyout which determine what happens at lease end.
A Fair Market Value (FMV) lease is a flexible financing agreement -- often called an operating lease or "true lease" -- where you pay for the use of equipment over a fixed term rather than paying to own it. At the end of the term, you have the option to purchase the asset at its current "fair market value," return it, or upgrade to newer technology.
A $1 buyout lease (also known as a capital lease or finance lease) is a lease-to-own agreement where you pay off the full cost of equipment over a fixed term and then purchase it for exactly $1.00 at the end. Because the ultimate goal is ownership, this structure is essentially an installment loan disguised as a lease.
There are some tax and accounting differences between these options.