Most organizations that lease equipment expect to return equipment at end-of-lease. However end-of-lease equipment return is often much more challenging than expected, for some of the following reasons:
- Distributed assets are very hard to track & manage for return.
- Easily accessed assets can be impossible to remove for operational reasons.
- Lease contract terms can make equipment return difficult or impossible.
For all these reasons it is very common for capital equipment leases to go into some form of extension or renewal. Lease extensions, renewals, rolls and poorly structured upgrades can quickly increase the cost of an equipment lease.
Lease Extensions can be costly. It is important to avoid:
- Rolling a current lease into or combining it with a new transaction
- Negotiating other offers such as binding Master Schedules
- Combining an extension with upgrades, new refresh program offers, and other offers
LPRS experts specialize in Lease End Services - evaluating and reducing the cost of lease extensions, renewals and other lease end costs for clients. Going forward as a part of LPRS’ Equipment Lease Contract Services, LPRS experts negotiate with leasing companies to improve contractual terms. Before committing to lease extensions, renewals, rolls or other end-of-lease decisions, make sure you fully understand the options defined in your contract.
