This is a transaction where the customer has the right to purchase the leased asset at a certain price at the time of termination of lease. If the purchase right is not exercised, the usage period can be extended through a secondary lease.
Scheme
Benefits
1. Reduction of running costs
By setting a purchase exercise price, the lease fee is lower compared to normal finance leases, reducing the customer's monthly costs.
2. Flexible payment schedule possible
By adjusting the purchase exercise price setting, it is possible to create a repayment schedule that matches the customer's cash flow.
3. Possibility of final ownership of the asset
While enjoying the benefits of leasing, such as outsourcing the declaration and payment of fixed asset tax and payment of movables comprehensive insurance related to asset ownership during the lease period, this approach responds to the need to have the option to ultimately own the asset.
Points to note
The purchase exercise price of the leased asset is set at an amount equal to or greater than the undepreciated balance at the time of termination of lease calculated using the declining balance method based on the useful life of the leased asset, and at a price that is not significantly lower than the fair market price at the time of exercising the right.
Main target assets
Information-related equipment, office equipment, industrial machinery, civil engineering and construction machinery, transportation equipment, commercial equipment, medical equipment, inspection and measurement devices, environmental and energy equipment, etc.