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Hey there, 

So I'm trying to help one of my vendor sales reps with a law firm opportunity.  The hardware buyout is extremely steep in the low six figures but what stood out is the sales rep said all of the maintenance on the current lease is bundled in. 

It's been a little bit since I've been on the hardware side of things but I'm pretty sure in most major markets a buy-out can not include future contracted copies if they're not used. 

 

Am I crazy or does that still apply in situations? 

 

Thanks everyone, 

 

John Mooney

https://www.linkedin.com/in/jbmooney/

 

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Jason H posted:

John, id be happy to discuss a little more in depth with you my experience privately as I’m pretty sure some of my competition is on this site. Send me your email or phone and we could chat next week if you’d like.

or you could PM (private message on this site), just a thought

John Mooney posted:

Hey there, 

So I'm trying to help one of my vendor sales reps with a law firm opportunity.  The hardware buyout is extremely steep in the low six figures but what stood out is the sales rep said all of the maintenance on the current lease is bundled in. 

It's been a little bit since I've been on the hardware side of things but I'm pretty sure in most major markets a buy-out can not include future contracted copies if they're not used. 

 

Am I crazy or does that still apply in situations? 

 

Thanks everyone, 

 

John Mooney

https://www.linkedin.com/in/jbmooney/

 

I see this from time to time here in the east.  I have no love for the person that signed them into that lease, however also understand why it's done. I believe if the action every went to court, the court would rule that it can't be done. Probably depends on what state you are in also

The big question is how was the service built into the lease. 

Was it done the right way as a pass through using the leasing company?  If so the customer can likely get the service portion removed.

Did the dealer simply build it into his monthly payment and get funded 100% up front for the service portion without the leasing company knowing?  If so the customer is screwed.

The easy way to know is to look at the original lease document.  If it is a pass through the service portion will be indicated on the lease doc.

Last edited by fisher
fisher posted:

If it is a leasing company pass through the customer will have to contact the leasing company and tell them they are dissatisfied with the original dealer's service performance and ask for a buyout with the service portion removed.

At that point the leasing company will most likely call the dealer who wrote the lease and tell them the customer wants their service removed from the lease, which will set off red flags to them, and they will most likely refuse to remove it. I have only seen 1 instance where a dealer removed the service from the lease. 

 

I guess it also depends on what is set is set up with the leasing company. We have ours setup that the leasing company will not give the customer a single bit of information. They send all requests and correspondence back to us to handle. 

Last edited by Jason H

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