Union Tool Corporation

The Union Tool Corporation
P.O. Box 935 • Warsaw, IN 46581
Phone: (574) 267-3211 • Fax: (574) 267-5703

Shipping Address: 1144 N. Detroit St. • Warsaw, IN 46580

Lease: OPTIONS

$1.00 Purchase Option Lease*

A $1.00 Purchase Option Lease is also referred to as a conditional sale. The Lessee (equipment user) leases the equipment paying fixed monthly payments for a specified period of time (term) and buys the equipment at the end of that term for $1.00. The Lessee may be eligible for tax benefits under the IRS Section 179 Tax Code.

Fixed Purchase Option Lease*

A Fixed Purchase Option Lease is also referred to as a conditional sale because the future price to purchase is fixed (generally 10% of the original lease or equipment purchase amount) at the time the lease contract is signed between the Lessee (equipment user) and the Lessor (leasing company). The Lessee leases the equipment paying fixed monthly payments for a specified eriod of time term). At the end of the term, the Lessee may purchase the equipment for the fixed purchase amount plus applicable taxes or return the equipment to the leasing company.

Fair Market Value “FMV” Purchase Option Lease*

A Fair Market Value “FMV” Purchase Option Lease is also referred to as a “True Lease” or a “Tax Lease”. The Fair Market Value purchase amount is determined at the end of the lease by the Lessor (leasing company). The fixed monthly payments are often less than other lease types because the Lessee (equipment user) may expense the monthly payments as an operating cost as in the case of a Rental Agreement. The tax benefits in this lease type may result in less taxable income for the Lessee. The Lessee (equipment user) leases the equipment paying fixed monthly payments for a specified period of time (term). At the end of that specified lease term, the Lessee has the option to purchase the equipment for Fair Market Value, continue to rent the equipment for an additional term at the same monthly payment, or return the equipment to the company.

Ask About Our 0% Leasing Options

* Lease is non-cancelable for the specified term.

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