Whats Wrong With Equipment Leasing Companies?

Geez, I would have a shorter blog if I asked "Whats Right With Equipment Leasing Companies"? Keep in mind that when signing any legal document, the buyer needs to read the terms and conditions, however what happens is that most signers forget the Ts and Cs.

Here's a few gripes that have and the reasons why most leasing companies fail to make the cut of taking care of the customer.

1. End of lease notification: Why must there be only a "window" of time when the customer can notify the leasing company that they would like to return the equipment. There are a few that will allow any time 30 days prior to the end of the lease, however most will have a "window" and if you do not meet that window, the customer will be caught in a "roll over" scenario that could be as little as 30 days and as much as one year!!! Wells Fargo will "Roll over" for one year!
2. Restocking Fee: This has got to be the worst! Charging to restock the copier when it was never in their stock in the first place! Citi Capital was the main culprit here, and I'm sure there are others.
3. Call for Remaining Payments: When a customer calls about the remaining stream of payments, the leasing company always quotes the buy-out price, never do they quote the remaining stream of payments! Most leasing companies do not make the cut with this one.
4. Payments: There are a few leasing companies that will actually tell the customer what number payment is being made on the monthly statement. Most never do this and are anticipating the the customer will get caught in a roll over and then make more payments after the lease has expired!
5. Poor Billing Practice: Invoices sent late giving the customer only a few days to make the payment, taking too long to remove insurance charges, billing the wrong tax amount and not corrected mistakes in a timely manner.
6. Fair Market Value: When a system sells for $20,000 and the leasing company quotes $6,000 to own the equipment to either the vendor or the customer. Lets go! The equipment is 5 years old and should only be worth a few thousand if that.

If the leasing companies would charge a "fair" rate for their services, drop long term roll overs, notify customers of their end of lease options, drop re-stocking fees and offer deep discounts to dealers to buy the equipment at the end of the term. This would allow dealers to maintain a fleet of used machines, have a better relationship with the customer and the leasing company and would stop the waste of having tens of thousands of used copiers stacked in warehouses all over the world.