Tagged With "FMV"
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How Much Do I Insure My Leased Copier For?
How much do I insure my leased copier for? Was a discussion I had with one of the sales rep in our office yesterday. From time to time, we will field calls from the clients asking how much to insure the leased copier for. The client then needs to submit that information to their insurance agent in order to produce a rider for the leasing company. Let me back up a moment. When a copier is leased, whether it's a dollar buy-out option or Fair Market Value, all of the leasing companies require...
Blog Post
Twelve Tips on How to Return Leased Copiers
Over the years, I would say that ninety percent of my clients leased their copiers with an option to buy the copier at the end of the term. Most of these leases had a buy out option for FMV (Fair Market Value). The general idea of an FMV lease is...
Blog Post
6 Tip Offs That Your Customer is Gathering Additional Proposals
Even though we ask, "are you entertaining any additional proposals ", there are times when "buyers are liars". Over the years, I would say ninety percent of those that have told me, no we're not entertaining any additional pricing,...
Blog Post
12 Tips on How to Return Leased Copiers
Over the years, I would say that 90 percent of my clients leased their copiers with an option to buy the copier at the end of the term. Most of these leases had a buyout option for FMV (Fair Market Value). The general idea of an FMV lease is that the customer has no intention of ever owning the equipment and they will return it at the end of the lease. Also means lowest lease payments. Most leasing companies have been and still are very aggressive with FMV rates (interest), however most will...
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Lease Rate Check
Since lease rates are continue to climb, I though ti would be a good time to have lease rate check for 36, 48 and 60 month FMV rates for over 3K. I'll start it off with these 60 months .0202 48 months .0245 36 months .0302
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Re: Lease Rate Check
From our two primary leasing partners Company 1 $1000 to $149000 on our primary product line. 36-.02872 48- .02323 60- .01926 Company 2 Over $3000 36- .02917 48- .0234 60- .0196 Both companies have slightly lower rates for competitive takedowns.
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Two Types of Office Equipment Leases
Thought I would put this together for our newbies. In addition I can direct my net new prospects to this blog so they can understand more about office equipment leases. There are three that I find the most popular. Finance Equipment Lease: Not the most popular lease in our industry but it's used for clients that want to own the equipment at the end of the term for a fixed price. Often referred to as a $1.00 purchase option. In addition the finance lease can also be used to take advantage of...
Blog Post
Firmware, Security and Hedge Against Inflation
The above title was a talk track we had in the car today while we were traveling from account to account. Our topic was about how can we get some of these 5 year old plus MPFs out of the field. Let's face it, the feature set of most copiers today has not changed in the five years except for some cloud functionality. For me one of the difference makers from copier to copier has been the print drivers. Alas Microsoft will kill off third party print drivers on 2027. Thus the question becomes...
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Lease Rate Check
Would love to hear from others for the latest rates for; 60 month FMV 36 month FMV
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Re: Lease Rate Check
From one company. Manufacturer subsidized. 60 net new .01866 36 net new .02802 60 .01944 36 .02915 From another company. 60 .0196 36 .02907
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Re: Lease Rate Check
Ty for this @fisher rates I know of 60 month FMV for .0212 36 month FMV for .0311
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Re: Lease Rate Check
let's take a look at the difference in the two rates.. A $10K lease using the rate of .0212 - $212.00 per month This means when the dealer backs out the rate, that $212 per month will fund them $10,816.32 Take the $212 and divide by the .0196 to arrive at the over book. In some cases the overbook will be more than the commission that is paid to the rep. Now let's take a look at the first set of rates. Pretty much means the manufacturer is kicking in a few dollars to by down the rate factor.
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Does it only happen to me?
It was two years ago, close to the end of COVID 19. On of my accounts was coming to the end of a 36 month FMV lease. At the time it made sense to re-lease the same 4 devices at the same cost per month for 24 months. Well, that 24 months is three months away from ending and my client is asking to re-lease again for the 24 months, however would like a small reduction in the cost per month. I can do the deal, however it will cost me. Interest rates are much higher and I have to use a $1.00 out...
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Re: Does it only happen to me?
It’s happening like that all the time now. I’ve been able to get a lot to change their mind but there are still plenty who want us to rewrite the lease.
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Re: Does it only happen to me?
New Lease, aging will lead to problems unless the machines are in good shape. Will the funding partner approve or are you holding in house?
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Re: Does it only happen to me?
Not sure if the is with GA, if so I will press the issue. Thanx for your input on this
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Re: Does it only happen to me?
This is an ongoing problem, and I have heard from Great America and others that many dealers are having this issue due to inflation and higher lease rates. It seems that a lot of customers are letting their leases going into renewal and are completely fine with it and then another percentage are releasing the machines at the same price or requesting a lower prices. We do not typically discount our release payments, unless we have to.
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Re: Does it only happen to me?
It’s very rare that we have had it done. And it may have been some at times that have slipped through the cracks, but we have had it done before.
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Re: Does it only happen to me?
I will say, and it is not often, we can sometimes get Great America to do an FMV release from what i can remember, but it really depends on the deal and it is not standard practice for them that’s for sure.
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Re: Does it only happen to me?
@Kimberly , device in good shape. Funding partner will only do a $1.00 out, which lowers revenue, after including buyout that leaves may $1,500 revenue for each device
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Re: Does it only happen to me?
We did a ton in 2020 but rare now. We would try to upgrade to newer refurb machine . Depending on age we can get FMV, but most do a 36 $1.00out refurb. More GP usually than a release.
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Re: Does it only happen to me?
It' good to know that I'm not the one in the boat rowing , thanx to all.
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Re: Does it only happen to me?
We try to avoid the release.....there is not much benefit to customer to release vs evergreen unless you drop the payment and then you are digging yourself into a deep hole from every upgrading. We push hard for a new lease. The only time we re-lease is to avoid customer doing the FMV buyout and owning the machine.
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Re: Does it only happen to me?
@Deanw I agree also with the re-lease, on a few occasions I've been able to release for the same price per month but with a 24 month term with FMV