Rate Check!

CIT has not changed their rates like all the rest. 60month FMV @ .0185

What is CIT's residual for .0185??

15% on .0185 60 months
17% on .0267 36 months

That's a crock, CIT sales may be saying that, but they are every bit of 25% 36 months and 15-20% for a 60 month term.

I have to deal with them on a regular basis.

Art

I'm sorry you think that. I have been working with CIT for the last 5 years, and those figures are what my customers have been getting when they purchased at term.

John:

Sorry for stating that your statement was a crock. However with your statement, I wonder if CIT has different buyout rates for different parts of the country.

Are those final numbers after the customers and CIT has haggled or is it the first buyout number that they fax to customer.

Thanx

Art

Art

It must be the first number that is sent to the customer. I try to make it a point to contact the customer at least 6 months prior to the lease expiration and upgrade them before the lease expires. I'll be honest, I have not had too many leases that have gone to term. Not to say I haven't made that many sales, but that the majority of the leases do not get the purchase option exercised. I'll put a feeler out tomorrow and see if I can get an answer on if they play favorites for different parts of the country. We'll chat later.

most of the leasing companies bill 5% over the booked residual and most of the time, the lessees don't object..

Art
According to the rep I deal with at CIT, they say it doesn't matter what part of the country you are from when it deals to rates. The drawback to that scenario is if your company sends them a million dollars in business each year, you may get a preferred rate as opposed to my company sending them a half million dollars each year. I'm sure they probably do a 5% overbilling of residual to make up any residual they may not get at the term.

John:

You have probably hit the nail on the head. We give them over $1,000,000 a year, they satisfy us with low rates upfront. Then the customer or the dealer pays on the back end when the equipment has to be sent back and or purchased.

Art

Speaking of sending equipment back. In the last year, I have sent several machines back to GE Capital using Bekin Van Lines. The machine works fine when it leaves our office, Bekins shrinkwraps and cartons the machine and sends it back to Wulff Enterprises. Several weeks later, the customer gets an invoice from GE that the machine is damaged, and requires x number of parts. Both times I called GE and offered to send replacement parts to them to fix the machine, and that the customer is not going to pay the invoice. Wulff in turn nevers calls back with an ok for us to send the parts. I guess GE never stops trying to gig the customer after the fact.
Roof

There was an article written about this practice from GE. Yes, they are out to get someone! Someones going to pay it may be the customer or the dealer.

GE wants someone to pay for the low rates that they were giving out!

Since hearing that GE farms their customer support out overseas and then having a complaint from the customer (the customer found it very hard to communicate with GE because of the very strong accent), I have decided to never sell another GE lease.

The author of the story was Ronelle Ingram

They did it recently to me on a machine that I sent back for a customer. They invoiced the customer for $503 for a broken bypass tray, missing finisher exit tray (SR720) and a Exposure Lamp (Savin 9935dpe). The customer called me, since I transferred their business to CIT, and asked what was up. I got the invoice from them and called the Wulff people. No Answer. I called Bekins for a insurance claim, and they had nothing written on their bill of lading for damages from Wulff upon delivery. Called Wulff again, finally got someone,and told him the finisher exit tray was in the cabinet, since I did not want it to get broken or lost, and notated it on the packing list. Strike One. Bypass Tray could not be broken since I taped it to the machine, put cardboard against it and shrinkwrapped it. Strike Two. As for the Exposure Lamp, I said ABC would send them the exposure lamp to fix the machine. He said he would have to get back with me. It's been three weeks and no return call. Since they see they are not going to get the money, they don't want the part. Like you said, GE will try to get you one way or the other, and if the dealer & customer do not catch it, GE WINS! As the old captain said, "Not on my watch!"
Roof