OPTSGUY,

The FMV lease residual value is set at the start of the lease proposal based on lease term, anticipated usage (annual operating based on hourmeter reading), operating enviroment, equipment type & specifications.

If the hours are exceeded at the end of the lease term you are on the hook for any impact on the FMV. Generally, if the leasing company gets 100% of tehrsidual vlaue at lease expiration you should have no worries. The FMV at the end of the lease is generally determined by 3 indepentent offers from various dealers and you will also be given an opportunity to purchase teh unit - generally the offer will come thru the dealer you bought it from. If the accumulated hours on the machine are significantly lower than anticipated, you should be given the option to continue the lease for an additional time period - generally at a reduce rate. (depending on the cost of financing at that time). Most of these options you should be made aware of by your dealer at least 90 days before the lease expiration date - many will open discussions 6 months before expiration. The more time you have - the more intelligent decision you can make vs a time pressured situation.