Understanding Fair Market and Residual Values in Negotiating Leasing Options

March, 2019


The terms “fair market value” and “residual value” have different meanings, and it is important to know the difference when buying or leasing PCs, laptops, and other equipment. In addition, those who hold the leases (lessees) and leasing companies (lessors) use different methodologies to create their own definitions. This article outlines the perspectives of lessees and lessors, and how the former benefits from negotiating lease contracts in a considered way.