Financing · Programs
$1 Buyout Lease
A $1 buyout lease is designed for businesses that want to own their equipment, with payments applied toward ownership and a one dollar purchase at the end of the term.
How it works
A $1 buyout lease is structured around ownership. You make fixed monthly payments over the term through a third-party financing provider, and those payments are applied toward owning the equipment.
When the term ends you purchase the equipment outright for one dollar, so it becomes a fully owned asset of your business. Monthly payments are typically higher than a Fair Market Value lease because you are financing the full value of the equipment.
End-of-term considerations
At the end of a $1 buyout lease you purchase the equipment for one dollar and it becomes fully owned by your business. There is no fair market value calculation and no return decision to make.
Tax considerations
Certain equipment financing structures may offer potential tax advantages depending on the transaction and applicable tax law. All Asset Leasing does not provide tax, legal or accounting advice and does not guarantee any particular tax treatment. Consult a qualified tax professional about your specific situation.
Frequently Asked Questions
$1 Buyout Lease questions
Do I own the equipment during the lease?
The financing provider typically holds an interest in the equipment until the term is complete. Once you make the final payment and the one dollar purchase, the equipment is fully yours.
Why are payments higher than an FMV lease?
A $1 buyout lease finances the full value of the equipment on a path to ownership, so monthly payments are generally higher than a use-based FMV lease with a fair market value purchase option. For equipment you plan to keep, the overall cost of ownership is often comparable.
Is a $1 buyout lease the same as other names I have seen?
A $1 buyout lease, a one dollar buyout and a dollar buyout all describe the same structure, where you own the equipment for one dollar at the end of the term. The name refers to that final purchase amount. It is a different structure than an equipment finance agreement, which we cover on its own page.
Can I pay off a $1 buyout lease early?
In many cases yes. These leases often include a buyout schedule with set payoff amounts at certain points in the term. Some financing providers apply an early-payoff fee and others do not. We review the specific payoff terms for your agreement so you know your options before you sign.
Can I finance used equipment with a $1 buyout lease?
Yes. New, refurbished and used equipment can all qualify. A financing provider reviews the condition and remaining useful life so the term fits the equipment, which usually means older equipment is matched to a shorter term than new equipment.
Is a $1 buyout lease a good fit for equipment I plan to keep?
Yes. A $1 buyout lease is designed for equipment you intend to own and use long term. We can help you weigh it against other structures.
Does a $1 buyout lease have tax considerations?
Because a $1 buyout lease is structured around ownership, it is often discussed differently for tax purposes than a use-based lease. All Asset Leasing does not provide tax, legal or accounting advice and does not guarantee any particular tax treatment. Speak with a qualified tax professional about how it would apply to your business.
All Asset Leasing helps businesses nationwide explore equipment financing solutions through third-party financing providers. We do not lend directly or guarantee approval.