Dollar Buyout

A one-dollar buyout purchase agreement is just that, the lessee pays the lessor $1.00 at the end of the lease term in order to transfer ownership. Having a dollar buyout at the end of term makes the lease look exactly like a term loan of the same term. The payments will be exactly the same. The only difference really is the name, and the fact that you have to send a check to the lessor for $1.00 at the end of the term.

Each Leasing Company will handle the dollar buyout differently. Most will actually require you to write and send a check for one dollar. Some will not. My advice is to play it safe and send the check every time. This will ensure that the equipment is yours no matter what. The last thing you want is a lawsuit over equipment ownership because of $1.00.