How do you manage Letter of Intent dates for your customers?

We have a template also for all potential accounts. Its something we discuss in the initial meeting because we all know how the client can be "screwed" with another 12 months of payments! Of course we don't provide this to current accounts IF IF they are shopping...

Muleyman

I schedule a task in our CRM system for the first day that the letter can be submitted based on the terms of their lease. When the task is due, I email them a letter addressed to the leasing company stating the client's intent to terminate lease #___ at the end of its initial term. I list the assets by model & serial # that are on that lease & ask that they send return shipping instructions to the appropriate contact once their final payment has been made. I have the client print it on their letterhead, sign it & send it via email & certified mail to the leasing company and the vendor I am replacing. Typically, they receive an email reply from the leasing company within a day or so.

Same as tx

The only time I send them in is if I am going to switch leasing companies or when it is absolutely necessary. The letter of intent triggers all sorts of monkey business at the leasing companies.....all of which the leasing companies will deny ever happens....even though I've caught them red handed several times. You have to figure out if your leasing company will give you "Penny Quotes". Basically there is a tiny window between when the last payment posts and when the next payment is invoiced where if you hit it just right the upgrade to return will be $0.01

Also, do not do business with any leasing company that does 12 month renewals. All of my leasing partners are one month renewals or 60-day to the customer but one month to us on upgrades.

As far as end of term goes we have a spreadsheet of all lease expirations and I put an appointment 3, 4 or 5 years out in my outlook for 90 days before a lease ends. I set that appointment as part of my process when I get the new lease signed.

quote:

Originally posted by txeagle24:
send it via email & certified mail to the leasing company and the vendor I am replacing.

Why would you send the letter to the current vendor you are replacing....that is just asking for them to come in an upgrade them. Many times the current vendor lets the customer fall through the cracks and never knows what hits them until they no longer get meter reads. But also leasing companies have that vendors back and will call the vendor and let them know the customer has requested a buyout.

quote:

Originally posted by fisher:
The only time I send them in is if I am going to switch leasing companies or when it is absolutely necessary. The letter of intent triggers all sorts of monkey business at the leasing companies.....all of which the leasing companies will deny ever happens....even though I've caught them red handed several times. You have to figure out if your leasing company will give you "Penny Quotes". Basically there is a tiny window between when the last payment posts and when the next payment is invoiced where if you hit it just right the upgrade to return will be $0.01

Also, do not do business with any leasing company that does 12 month renewals. All of my leasing partners are one month renewals or 60-day to the customer but one month to us on upgrades.

As far as end of term goes we have a spreadsheet of all lease expirations and I put an appointment 3, 4 or 5 years out in my outlook for 90 days before a lease ends. I set that appointment as part of my process when I get the new lease signed.

The only time a letter of intent is required is if you are moving to a new leasing company and taking out your competitor. If you are the paper holder then no letter of intent is needed as you can upgrade to return or keep and all the transaction is internal with the leasing company. If a letter is needed make sure it is sent in certified to protect the customer. Leasing companies like to play games after they get these letters. They will call the customer and try to convince them to buy the old copier and give them some low ball number.

It is the customers responsibility to send in the letter of intent. I had a customer that despite being told several times to send in the letter then missed it by one day to WF and the contract renewed for 12 mo. The new 36mo lease turned into a 48mo lease to accommodate the $800 x 12 mo's. They had some IT changes and the right hand did not know what the left hand was doing....I lost my IT contact person because they let him go do to downsizing. But sen the letter to the regional IT person. Then I get a call from the main office to help return these 4 units.....by that time they missed the returning the units a 2nd time. You can lead a horse to water but you cannot make him drink.

Wells Fargo is one of those companies to stay clear....they have a 12 mo renewal.

quote:

Originally posted by montecore:

The only time a letter of intent is required is if you are moving to a new leasing company and taking out your competitor. If you are the paper holder then no letter of intent is needed

Be careful with such generalities. What may be true of you and yours may not be true of me and mine.