Features
This form of leasing gives the customer the right to purchase leased assets at a fixed price at the end of the lease. In addition, if the purchase right is not exercised, the contract can be renewed, allowing the customer to extend the usage period.
Benefits
1. Financing Support
Purchasing at the purchase exercise price reduces the customer’s monthly financial burden since lease fees at low compared to normal finance leasing. In addition, if the purchase cannot be made due to a lack of funds, use of the assets can be continued through a secondary lease.
2. Equipment Strategy Support
It is difficult to predict future changes, such as the relocation of manufacturing equipment to domestic or overseas factories or group company factories, or transfer of such equipment to another company in the same business field. For circumstances like these, having the right to purchase assets gives customers flexibility for their equipment strategy.
3. Paperwork Support
Customers can enjoy the same benefits associated with finance leasing, such as support for fixed asset tax return filing and payment, asset disposal procedure support, and tax reduction/subsidy system support.
Important Point
The purchase exercise price of the leased asset must be set at the amount equivalent to the unamortized balance or higher at the time of lease expiration calculated using the fixed-rate method based on asset service life, and set at a price that is not substantially below the fair market price at time of exercise.
Targeted Assets
Information equipment, business equipment, production equipment, civil engineering/construction machinery, transport equipment, commercial equipment, medical equipment, inspection and measurement systems, environment/energy equipment, etc.
