Leasing 101/ Test your knowledge part 1

If you are looking for a good topic for a sales meeting, try this one out.  Often with sales training, people will nod along saying they understand everything being presented.  This is the first of a 3 part test I created.  I would have my group first take the test and I would review the answers.  It would be clear what areas I would need to address in training for my group and also by individual.  Each question if explored properly can be the topic of a quick sales training.

I will post the other 2 parts of this exam over the next few weeks.  If you would like the answers, email me and I can send you a copy of the test with the answers included.  smurr@offsiteequipment.com

you can use a calculator,   no other items may be used
Leasing Basics Exam during this exam (notes,   person next to you, calling Regis, etc.)
1 Name the two accounting   classifications of leases:
2 What is a “step   lease”?
3 What is a residual?
4 Why does a customer have   to pay property tax on their leases?
5 What is a restricted   credit industry?  (How would you   explain this term to a customer)
6 Name 4 restricted credit   industries:
7 How many years does a   company need to be in business not to be considered
a start up business?
8 What credit information   is needed for a start up company?
9 What is “application only” and what information is required for application only
transactions?
10 If you are going to propose a new solution to a current customer, what is the name of the quote
you would request from the leasing company they are currently with to close out the old lease?
11 On leases that do not qualify as “application only”, what credit information is
required by our leasing   partners?
12 What is “air” or “water” in leasing terms defined as?
13 If you are pricing a competitive takeaway for a new customer, what is the estimated
buyout?  20 months remaining on a CPC where they have a minimum volume of
8,000 pages per month at .055 and their overage is .013.  There are 2 assets.
14 You are in a closing with a client and before they sign they ask how much more it would
add to their payment if they added an accessory.  You know the accessory is $2,000.00.
The agreement is 60 months FMV.  What do you say?  No peeking at rate sheet, should know this off the top of your head.
15 The next question they ask you is how much they can buy the machine for at the end of
their lease.  What do you say?

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