The table on the left applies to purchase orders that are issued monthly, and illustrates how the total purchase price of a $10,000 unit decreases with time. At the end of the 4th month, for example, the customer has the option to either return the equipment, or purchase it for $8,000.

The table on the right shows how an open-ended purchase order can qualify for a 5% odd-month discount that is automatically applied if a customer’s payments are made on time. The 5% discount ceases to apply to any order that does not abide by the net terms extended to the customer.

If the customer keeps the rental going indefinitely, there will come a time when the total purchase price becomes $0, at which time the title of the equipment transfers automatically to the customer. (as shown on the left on line 20, and on the right on line 27).

The process of ownership described above should neither be construed as a “LEASE”, nor a “RENT-TO-OWN”, with either of which it is obviously not competitive. It is AC&E’s own way of ensuring that the customer’s rental payments never exceed twice the purchase price of the rental, finance charges included, while still retaining the option of returning the equipment at any time during the rental.