Current Lease Rates

DLL

36, FMV $0 Down .0268
60, FMV $0 Down .0188

American Express

36 Mo. FMV $0 Down .0271
60 mo. FMV $0 Down .019

39 Mo. .0275
63 Mo. .0189

Greater Bay Capital (By the way: The best customer service I have experienced in our industry):

36M $0-Down FMV: .0273
39M $0-Down FMV: .0268
48M $0-Down FMV: .0227
60M $0-Down FMV: .0189

Above rates include $10.00 GC to Omaha Steaks for every $5,000 in funding...direct to the rep!

Contact Samantha Metzler at GBC 847-580-8838

Do you have a web address for Greater Bay?

Art

All this talk about rates looks at leasing only from a selfish point of view without regard to the commitment your customer will make based on your recommendation. You can't ignore rates but what about forced insurance, late fees and grace periods, renewal terms, buy-out options and expenses, whether there will be property Tax assessed and how accurate will be the assessment...

For these reasons and more, I'm willing to have a slightly higher rate (.0271 - o Down - 36mo. FMV) with American Express.
No Property Tax under $20K and only for the amount invoiced if assessed
No Insurance for 45 Days
45 day Grace period on payments
10% penalty for late payments vs 15%
90 day renewal that the vendor can waive instead of one year
Buy-Out to Returns without having to purchase the equipment
Buy-out that is less than the sum of payments.
We own the customer so no competition from the leasing company at the end of the lease.
The list goes on-and-on.

I find that customer disatisfaction has as much to do with leasing as it does equipment or service anymore and leasing is getting worse.

I'm told by my AM Exp. Rep that they don't want to do anything to upset a current or potential American Express Card Holder and that makes sense to me. What does Wells Fargo, GE Capital, et. al. have to lose by going for every penny they can regardless of the consequences?

Good stuff Jim, and with the tricks GE has started, all of our accounts will be subject to financing upgrades.


We have been doing business with CIT for quite a while and I find them to be not so forth coming with a remaining stream of payments for our own customers (meaning CIT is trying to jam the dealer and the customer for a few extra payments).

If you're in this for the long haul, hook up with some one has has good rates and not the best! The best will come back to bite you in the butt more times than you can count.

I must say that your report on AMEX has me thinking about giving them more of my business.

Jim, what are thoughts on what GE is doing with refinancing thier exisitng leases?


Art

As long as we keep going with whoever has "The low rate of the Month", leasing companies will continue to come up with what I call "alternative forms of revenue."

As long as lease companies feel that we don't care about anything but low rates, they will continue to lower their rate with the intent of getting their profits back in new ways.

How many of you know whether your lease company charges "rental" for days between the day a copier is delivered and the day the lease commences. Even though that copier still belongs to your company, the lease company may be charging your customer for those days and it is 100% profit.

Have any of you begun to experience customers being charged for repair or reconditioning of equipment AFTER the unit is returned. The lease you are having your customer sign gives them the right. Here is a direct quote, “You agree to reimburse us for any cost we incur to refurbish returned equipment.” How do you fight that if the unit is now three states away. I predict that "repair" bills are going to become more and more frequent.

What about invoices that are sent so late that it is almost impossible to pay on time? I have literally heard of invoices being received after the due date guaranteeing the 15% late charge. Someone figure out what the APR is on a 15% charge for a payment that is just a few days late.

Leasing companies don't care what you think or what your customer thinks of them. Your Leasing Rep may care but they don't make the rules. That is why I am so hopeful that American Express is different. They have reason to care what the customer thinks of them.

Samantha's e-mail address at Great Bay Capital is: samantha.metzler@gbbk.com (I do not know their website).

All good comments. We have a relationship with a bank (Heartland Business Credit) that we have guaranteed the residuals. This allowed us to write a custom program for all of our major and local goverment accounts. However, occasionally I have trouble getting a customer credit and we have gotten stung in the past (Norwest Financial...now Wells Fergo Ripoffiancial)...so it is prudent to have good relationships with a couple good leasing companies...so GBC seems to be working for us as an alternative.