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Hey good morning P4P peeps, 

 

Have a challenge with one of my sales reps new ZBAs.

 

When the customer requested buy-out information from their leasing company it was forwarded to the original vendor and the original vendor is including future service clicks for the length of the contract in it. 

 

It's been a long time since I've seen a company do something like this, and while I may be mistaken here, I thought charging customers for unused clicks on a buyout wasn't legal (at least in NY market, I'm now in California)

 

Anybody run into this lately? 

Last edited by John Mooney
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Speaking from the leasing company standpoint - if the service was included in the lease agreement such as a cpc, mps, value lease or the base service included in the lease and the lease is written that the customer is being held to a minimum monthly payment that includes that service, any early payoff quoted will include the future unused cost as the lease is non-cancellable for the term and payment listed.  I see this happen on a regular basis when companies are requesting to payoff leases early.

 

If the lease and the service agreement are separate agreements, then the lease would need to be paid in full to the leasing company (as they are non-cancellable) and then the terms of the service agreement will govern how much needs to be paid to the dealer.

 

 

If a customer could not be charged for unused clicks, all maintenance agreements would be cancellable upon request whether there was a lease involved or not. That being said, I wouldn't put anything past New York (or California for that matter).

Some lease agreements have maintenance costs just "pass through" the leasing company. However, some dealers have been known to get their maintenance "pre-funded"  by the lease agreement meaning the dealer excepts a discounted rate for the maintenance in return for an upfront payment for the whole term of maintenance. There is no way to credit unused clicks in that scenario.

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