What is the possibility of real value?

Real value option is the right to purchase rented items for real market value at the end of the lease period. It is not an obligation to buy, but rather about the warranty for all parties involved. This option helps the owner to get a fair price, while the buyer is less likely to be overcrowded. This type of possibility is often used with real estate, cars and high price equipment. The risks associated with the use of this financing method depend on market volatility and specific characteristics of rented items. This is because the real market value usually changes during the rent period. This number is usually determined as soon as the tenant tells the intention to buy.

Leasing with the possibility of real value often has lower payments. This is mainly because the customer is not considered to be the burden of ownership. On the contrary, the customer also does not receive some of his own advantages of own own, such as tax depreciation.

Real value customers usually have three options at the end of the rental period. They can return the item to the owner, sign a new rental contract, or buy an item for real market value. If the customer decides to sign a new lease agreement, it is possible that the conditions will change, but may be in the best interest of the owner to extend the possibility of real value. This is primarily the case of items that can increase value such as real estate.

As soon as the lessee decided to apply the real value, there are several factors in determining the real market value of the item. Some of the most common are the Versus demand, the current cost of exchange of item and the cost of similar items. Other factors that can be considered include the cost of maintenance of the item, the risk of ownership and the expected return on investment.

The possibility of buying a fixed price is an alternative to buyers who want to avoid the uncertainty of the price calculated with the possibility of real value. With this option JE selling price set before the end of the lease period. This amount is usually based on the estimated future value. Depending on market activity, this may be risky to the buyer or seller. For this reason, the possibility of a fixed price tends to be less popular.