Want a problem free lease provider?
Kevin F Clune, CLFP
“We only want one leasing company to fight with when our customers have problems.” This was the shocking reply from an equipment vendor from whom we were attempting to solicit new business. The underlying premise to this statement was that all leasing companies will eventually cause problems.
Even though we made every attempt to communicate that leasing companies are not all alike, his reply was that he wanted the lowest payment to offer his customer…translation was that he could only sell the lowest payment.
Also, he was not open to a change that promised a problem free lease option for his customers. I guess he had believed the old adage that it is better to keep the problems you know because the new ones might be worse.
1. Why is there a belief among equipment dealers that all leasing companies cause problems for their customers?
2. Why should vendors risk losing customers due to the practices of the leasing company they recommend?
3. What are the unaccounted costs associated with these problem relationships?
The fact that the leasing industry is largely unregulated has allowed the bad actors to fly under the radar. However, there are alternative providers, such as Clune & Company, that are “self-regulated” and offer transparent lease contracts without any “end of lease surprises”.
As mentioned in the comment from this particular vendor, one factor in his decision was to be able to offer the lowest payment. However, as outlined in this comparison chart, the lower payment does not guarantee the lowest total cost.
There also may be tremendous pressure for vendors to use the “in house” or “captive” leasing entities, and he or she may feel that the benefits of these relationships will outweigh the risks of losing customers.
If an equipment vendor could quantify the time spent dealing with the problems that some leasing companies inflict on their customers, they may be surprised. Automatic renewals, forced insurance, property tax issues and onerous return conditions are just a few of the items to include on the list of expenses.
In the end, isn’t it always better to engage the services of a problem free lease provider? They do exist.
Let us know how we may serve you,
Kevin F. Clune, CLFP
Clune & Company
