A Fair Market Value lease, or FMV lease, is a fixed term rental agreement that provides the ability to purchase the equipment at the end of the term for its fair market value. A fixed purchase price is not defined at the beginning of the lease term. Instead, at the end of the term, the company can purchase the equipment for its fair market value, which is based on similar equipment, terms, and conditions. They are attractive because they allow businesses to use equipment for a fixed period in exchange for regular lease payments. It’s important to note that the lending company retains ownership of the equipment during the lease.