What rights does a lessee have at the end of a secured loan?

At the end of a secured loan, the lessee typically has the right to purchase the equipment. This right is often a key feature in leasing agreements, especially when the lease is structured as a lease-to-own arrangement. By providing the option to buy, the lessee can acquire the equipment outright, which is particularly advantageous if they have utilized the equipment effectively during the lease term and wish to continue using it without further financial obligations of leasing or renewing. This option also allows lessees to capitalize on their investment in the equipment and plan for future financing needs.

Other options listed do not typically apply to a lessee's rights under a secured loan finish. For instance, the right to depreciate the equipment generally pertains to tax considerations related to ownership, which the lessee does not hold until the equipment is purchased. The right to lease additional equipment is dependent on separate agreements and terms, and selling the equipment directly would not usually be a rightful act of the lessee until ownership is established post-purchase. This highlights the significance of the purchase right as a critical component of equipment leasing transactions.