Leasing equipment for your school can be complicated. In the midst of the COVID-19 pandemic and all of the worries and uncertainty you’re facing every day, we knew there had to be a better way to provide schools with low cost, high quality equipment. At Corporate Leasing School Solutions (CLASS), we have decades of experience in educational leasing. With that knowledge, we’ve created a totally new leasing structure that always benefits your school.
When it comes to leasing equipment for your school, you typically have two options: a Fair Market Value lease (FMV) or a Dollar Buyout lease (DBO).
In an FMV Lease, equipment is leased for a certain number of months that has been agreed upon in advance. Similar to an Auto lease, the payments cover the value of the equipment used over the term less the projected residual value. It offers lower monthly payments and some flexibility at the end of your lease when compared to a traditional finance lease. This includes the ability to return the equipment, purchase the equipment for the then fair market value or extend the lease.
However, FMV Leases can come with unexpectedly high End of Lease costs. These include high lease damage charges, extensive buyout costs, and the potential for additional monthly costs should the equipment be returned late or delayed.
On the other hand, DBO Leases are paid in full, with the Lessee will making fixed payments to the Lessor over the set term of the lease. Once the lease ends, the Lessee retains ownership of the equipment for a $1 payment.
DBO leases result in higher payments versus FMV leases, as well as a lack of flexibility. Additionally, even though you get the benefit of ownership, you wind up with outdated equipment and no real knowledge of how to dispose of it.
Fortunately, the Hybrid Lease from Corporate Leasing Associates School Solutions presents the best of both worlds. You get the low payments and flexibility of a FMV lease while still gaining the benefits of ownership you’d find in a DBO arrangement, with the added benefit of a dedicated and experienced team at your side for any questions.
To learn more, contact us today to schedule your personal consultation!
All the Best,
The CLASS Team
