2-24-09 TRL NEWS - see the latest write up from our newsletter here
Real questions regarding the TRL:
I don't like FMV because it's too easy to get burned at the end.
First of all, if you turn it in, you are not getting hit with any fees. We want the equipment turned in. If they don't know at the beginning of the lease if they are going to turn it in, we simply guide them to our off lease website, www.2nd-byte.com and show them fair market value today. Real fair market is what we're selling them for, the return value is wholesale.
What if I want to buy some of the equipment, and return the rest?
That's ok, as long as we set expectations regarding what equipment is being returned. We will quote fair market value of the equipment they are keeping and they return the rest.
What about renewal? Am I going to be automatically put into renewal for a year?
The option for month to month exists if it makes sense. Otherwise, we are going to send a letter 120 days prior to the lease ending asking for intentions. They may either, continue to rent, buy some of the equipment and return the rest, or return all the equipment. Remember, we want it back, that's the difference between P&L and other companies looking to make a buck on renewals.
How are returns handled?
We will contact you and/or the end user 120 prior to the lease ending. At that time we will send a letter wanting to know if they want buy out numbers, instruction for returns, or any other helpful information. It's at this time and at the time of funding (verbal) that we will cover expectations.
Are the clients required to return the equipment?
We would prefer they return because that's how the program is set up, and another lease means more business. However, the end of lease options are return some or all of the equipment, continue to rent, or buy out at fair market value
Can you compete with DELL and HP?
Yes, we do it every day. Because we want it back, and have the ability to resell, we are very aggressive with the residuals.
What is the perfect deal? The sweet spot?
The perfect deal is the deal that's all equipment, desktops, laptops, and or servers, with the intent of either evaluating or returning the equipment in 2 or 3 years. We can combine software into the deal, but keep in mind that the value of the program comes with the residual play.
What type of credits?
We will not take credit risks with this program. We are investing in each company we do a lease with because we are putting significant equity into the deals.
Our Niche: Desktops, Laptops, Monitors, some Servers for companies who need to rotate, or are already rotating every 2-3 years.
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