Fair Market Value

Many end-user organizations (lessee) enter into contractual agreements with leasing companies (lessors) with the hope that the lessor will work with them if the need to return the equipment arises during the course of the lease due to malfunctions or other problems. Additionally, lessees often have a high comfort level regarding the flexibility of the terms and agreements of the lease, chiefly because they have built a relationship with the leasing company over a period of years. However, many lessees have had their hopes dashed and watched their comfort levels quickly fade away. The following article will help you negotiate the proper leasing terms and conditions up front that will give you the "flexibility" you need to mitigate unforeseen conditions that may arise later on.

February, 2004