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Lease Purchase Financial Glossary

What is it? Full payout, net leases structured with a term equal to the equipments estimated useful life. Because many Lease Purchases include a bargain purchase option for the lessee to purchase the equipment for one dollar at the expiration of the lease, these leases are often referred to as dollar buyout or buck-out leases. Lease Purchases are generally considered to be Capital Leases from an accounting perspective and non-tax leases from a tax perspective due to their bargain purchase option and length of lease term.

Finance Term Definition Added By: Gabriella

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Other Similar Finance Terms:

Financial Term Total Return is A securitys total return reflects not only the income that it pays out from interest or dividends, but also any change in its share price or principal value.

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