--- title: "LPRS Blog: Leasing911 | Leasing Myths" description: Leasing Myths | The LPRS Leasing911 Blog provides practical advice to lessees. --- [![Lease Portfolio logo](https://blog.lprsllc.com/hs-fs/hubfs/LPRS-logo-1.png?width=788&height=288&name=LPRS-logo-1.png "Lease Portfolio logo")](http://lprsllc.com) [![](https://blog.lprsllc.com/hs-fs/file-2336672912-png/images_new/icon_blog.png)Blog](http://www.lprecoveryservices.com/blog)      [![](https://blog.lprsllc.com/hs-fs/file-1745979510-png/images_new/call_icon.png)+1.866.348.3322](tel:866.348.3322)     [![](https://blog.lprsllc.com/hs-fs/file-1745979515-png/images_new/mail_icon.png)](mailto:info@lprecoveryservices.com)[info@lprecoveryservices.com](mailto:info@lprecoveryservices.com)[mailto:info@lprecoveryservices.com](mailto:info@lprecoveryservices.com)   [![Download Lease Accounting Change White Paper](https://no-cache.hubspot.com/cta/default/195946/908ce35a-6a06-48d3-ac18-229ed2c4fb7c.png)](https://cta-redirect.hubspot.com/cta/redirect/195946/908ce35a-6a06-48d3-ac18-229ed2c4fb7c) ![blog banner](https://blog.lprsllc.com/hs-fs/file-1747562866-png/images_new/sitepage-banner.png) # LPRS Blog: Leasing911 ## [Lease Myth Busting – Myth #3 – Leasing is a cost effective hedge against technology obsolescence:](https://blog.lprsllc.com/blog/bid/221647/lease-myth-busting-myth-3-leasing-is-a-cost-effective-hedge-against-technology-obsolescence) Posted by [John Kirk](https://blog.lprsllc.com/blog/author/john-kirk)  Oct 2, 2017 3:43:00 PM - [Tweet](https://twitter.com/share) [![](//) ](https://blog.lprsllc.com/blog/bid/221647/lease-myth-busting-myth-3-leasing-is-a-cost-effective-hedge-against-technology-obsolescence) The reality of rapid technology obsolescence raises important questions regarding the role of leasing, specifically: which of the parties (Lessor or Lessee) in a lease transaction processes the most financial and technology risk as a result of technology obsolescence and how does this compare to the risks a Lessee may process if the equipment was purchased instead of leased. In this installment of Lease Myth Busting we take a common sense based approach to examining how leasing affects technology risk and financial risk for Lessees relative to Lessors. [Read More](https://blog.lprsllc.com/blog/bid/221647/lease-myth-busting-myth-3-leasing-is-a-cost-effective-hedge-against-technology-obsolescence) Topics: [Leasing Myths](https://blog.lprsllc.com/blog/topic/leasing-myths) ## [Lease Myth Busting – Myth #4 – Fair Market Value (FMV) is a well understood concept which reflects the generally agreed upon approach to establish the value of equipment available at any point in time](https://blog.lprsllc.com/blog/bid/221653/lease-myth-busting-myth-4-fair-market-value-fmv-is-a-well-understood-concept-which-reflects-the-generally-agreed-upon-approach-to-establish-the-value-of-equipm) Posted by [John Kirk](https://blog.lprsllc.com/blog/author/john-kirk)  Aug 1, 2017 3:38:00 PM - [Tweet](https://twitter.com/share) [![](https://blog.lprsllc.com/hs-fs/file-1741890333-png/images_new/logo.png) ](https://blog.lprsllc.com/blog/bid/221653/lease-myth-busting-myth-4-fair-market-value-fmv-is-a-well-understood-concept-which-reflects-the-generally-agreed-upon-approach-to-establish-the-value-of-equipm) “Fair Market Value,” or FMV, is often referenced, and frequently capitalized in lease documents and therefore looks like a defined term in a contract. Most lessees reading a lease contract which contains FMV assume it’s defined in some reasonable and straightforward manner. In many leases, FMV is not defined and when it is defined it is often defined in a manner which is extremely lessor-favorable. Many apparently benign elements of the definition such as “as mutually agreed” actually create material risk for the lessee and can result in extensions since the lessor’s incentives are affected by the fact that monthly rents continue to be paid while negotiations go on. Other contractual approaches to more tightly defining FMV like hiring an appraiser or a few appraisers have similar risks – the whole process leads to extensions since these definitions rarely include a time frame. The bottom line is that while FMV can be well structured to reflect the lessees understanding of Fair Market Value –this is almost never properly addressed in lease documentation from the lessee’s point of view. If you want to put your FMV definition to the true test– just ask your lessor for an FMV quote on all of your remaining leases and see what you get back. If the number is surprising you may need help from an expert. [Read More](https://blog.lprsllc.com/blog/bid/221653/lease-myth-busting-myth-4-fair-market-value-fmv-is-a-well-understood-concept-which-reflects-the-generally-agreed-upon-approach-to-establish-the-value-of-equipm) Topics: [Leasing Myths](https://blog.lprsllc.com/blog/topic/leasing-myths) ## [Top 5 Equipment Lease Financial Risks](https://blog.lprsllc.com/blog/bid/277450/top-5-equipment-lease-financial-risks-0) Posted by [Jon Nykvist](https://blog.lprsllc.com/blog/author/jon-nykvist)  Jan 14, 2015 1:00:00 PM - [Tweet](https://twitter.com/share) [![](https://blog.lprsllc.com/hs-fs/file-29027339-jpg/images/risk_mousetrap-resized-259.jpg) ](https://blog.lprsllc.com/blog/bid/277450/top-5-equipment-lease-financial-risks-0) In equipment leasing, there’s generally an inverse relationship between risk and cost. A high-risk equipment lease generally has a lower lease rate. Many enterprises understandably seek the lower rate, but this strategy will only be effective if the risks are well-understood, so that they can be minimized in the lease agreement and properly managed during operations. [Read More](https://blog.lprsllc.com/blog/bid/277450/top-5-equipment-lease-financial-risks-0) Topics: [Equipment Leasing](https://blog.lprsllc.com/blog/topic/equipment-leasing), [Lease Agreements](https://blog.lprsllc.com/blog/topic/lease-agreements), [Equipment Lease](https://blog.lprsllc.com/blog/topic/equipment-lease), [Leasing Myths](https://blog.lprsllc.com/blog/topic/leasing-myths) [All posts](https://blog.lprsllc.com/blog/all) ### Subscribe to Email Updates ### Think equipment leasing is straightforward? Think Again. Learn why almost everything you know about equipment leasing is wrong. [![Top 10 Equipment Lease Myths](https://no-cache.hubspot.com/cta/default/195946/4f2e7b28-a4d1-4627-a408-e4a025127853.png)](https://cta-redirect.hubspot.com/cta/redirect/195946/4f2e7b28-a4d1-4627-a408-e4a025127853) ### Recent Posts ### Posts by Topic - [Equipment Leasing (17)](https://blog.lprsllc.com/blog/topic/equipment-leasing) - [end of lease options (8)](https://blog.lprsllc.com/blog/topic/end-of-lease-options) - [Lease vs Buy (7)](https://blog.lprsllc.com/blog/topic/lease-vs-buy) - [Fair Market Value (5)](https://blog.lprsllc.com/blog/topic/fair-market-value) - [Lease Agreement (5)](https://blog.lprsllc.com/blog/topic/lease-agreement) - [Equipment Financing (4)](https://blog.lprsllc.com/blog/topic/equipment-financing) - [Equipment Lease (4)](https://blog.lprsllc.com/blog/topic/equipment-lease) - [Hospitals (4)](https://blog.lprsllc.com/blog/topic/hospitals) - [hfma (4)](https://blog.lprsllc.com/blog/topic/hfma) - [Leasing Myths (3)](https://blog.lprsllc.com/blog/topic/leasing-myths) - 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[hospital supplies (1)](https://blog.lprsllc.com/blog/topic/hospital-supplies) - [it equipment leasing (1)](https://blog.lprsllc.com/blog/topic/it-equipment-leasing) - [lease extension (1)](https://blog.lprsllc.com/blog/topic/lease-extension) - [lease schedules (1)](https://blog.lprsllc.com/blog/topic/lease-schedules) - [leasing (1)](https://blog.lprsllc.com/blog/topic/leasing) - [master lease agreement (1)](https://blog.lprsllc.com/blog/topic/master-lease-agreement) - [medical equipment financing (1)](https://blog.lprsllc.com/blog/topic/medical-equipment-financing) - [notice period (1)](https://blog.lprsllc.com/blog/topic/notice-period) - [office equipment leasing (1)](https://blog.lprsllc.com/blog/topic/office-equipment-leasing) - [truck leasing (1)](https://blog.lprsllc.com/blog/topic/truck-leasing) [see all](https://blog.lprsllc.com/blog/topic/leasing-myths#) **Lease Portfolio Recovery Services LLC** **Phone** [+1.866.348.3322](tel:866.348.3322)  **Email ** [info@lprecoveryservices.com](mailto:info@lprecoveryservices.com) 30 Southwest Park, Westwood, MA 02090 © 2026 Lease Portfolio Recovery Services LLC | [Disclaimer](https://blog.lprsllc.com/hs-fs/file-2084017273-pdf/pdf/website_disclaimer_3_15_11.pdf) Web site designed and developed by [RainCastle Communications, Inc.](http://www.raincastle.com/)