End of Lease Options What is Everyone Doing?

I am upgrading 95% of the time. The only reason I would not upgrade is if the new model is not available for long term due to refresh or supply constraints.

If the make/model is the same such as a Ricoh IM C4500 which has been out for awhile then I really do not want to approach my 36 month lease customers with this same model. In that case I would potentially look at releasing for a 12 or 24 month term with a little GP in the deal or I could switch manufacturers and sell them a Canon DX C series.

How does a re-lease count towards your monthly quota?

Every leasing company can give you a 12, 18 or 24 month rate. Just remember that if re-leasing the same equipment you might have to do it on a $1 out.

@John posted:

I am upgrading 95% of the time. The only reason I would not upgrade is if the new model is not available for long term due to refresh or supply constraints.

If the make/model is the same such as a Ricoh IM C4500 which has been out for awhile then I really do not want to approach my 36 month lease customers with this same model. In that case I would potentially look at releasing for a 12 or 24 month term with a little GP in the deal or I could switch manufacturers and sell them a Canon DX C series.

How does a re-lease count towards your monthly quota?

100% for revenue with a release.  However re-leasing for 12 months makes sense unless I raise the monthly payment.  Thanx for this how about hearing from others?

We are upgrading 95% of the time also, but we have done some 36 months re-leases if customer agrees. Nice GP in those at same payment.

@Jason H posted:

We are upgrading 95% of the time also, but we have done some 36 months re-leases if customer agrees. Nice GP in those at same payment.

Ty, so the initial lease is 36 months and then re-leasing at the same cost per month?

Yes that’s what I try to do if customer agrees. Not wrapping it around any kind of BS lies or games, just simply telling them that they can release the same machine for three more years at the same payment and a lot of people are good with that.

@Jason H, that's cool and like you stated good GP.  I was going to lead with 24 for the same cost tomorrow, but will lead with 36.  Ty for the help on this

I'd agree with @Jason H on this one.  Good luck!