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Buyout

The lump-sum amount required to terminate a long-term Ontario HVAC rental or financing contract before the end of its term and take ownership of the equipment.

Buyout figures in Ontario rental and finance contracts are calculated from internal company depreciation schedules — not statutory formulas. The schedules are typically aggressive and keep the buyout high for most of the term.

Initial buyout quotes are routinely negotiable, particularly where cumulative payments already exceed the equipment's installed value many times over. They can also be challenged outright where CPA grounds apply.

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