bargain purchase option

Definition

A provision of a lease that will allow for the purchase of leased assets in the future by the person leasing it (lessee) and it at a set price that is usually so low that the lessee is almost guaranteed to use this option.

Use this term in a sentence

You may want to include a bargain purchase option so that you will have more options at the end of the lease.

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Once they agreed to the lease, they decided to include a bargain purchase option so that the lessee would eventually buy it.

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The term of the lease was for substantially the entire useful life of the equipment though it did include a bargain purchase option at the end date.

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bargain price bargain sale to a charitable organization