Test Your Leasing Knowledge Volume III

The final part of our 3 part series.  For the complete test or answers, email me at

smurr@offsiteequipment.com

27.  Your customer has a large payoff, the leasing company rules say you can go

how much over MSRP and still agree to book the total deal?

28.  If the leasing company agrees to 125% of retail at FMV, You are funding

$150,000. Retail is $100,000.00. 60 month term is what you are selling.

60 month dollar out is .0229.  what is the blended payment and blended rate factor

in this example?

29.  Name two things you can do to lower your lease rate without asking for a rate

concession.

30.  Name 2 leasing sources who will approve mortgage business based on legal name,

address, and ph#.

31.  Acme Corporation is a current customer who has a lease with US Bank. If you send

the new deal to US Bank, the cost to close out the old lease is $2,500.00. If you send the

lease to another source, the cost to close out the old lease is $3,500.00. If US Bank declines

the customer’s credit request and CIT approves them, what dollar figure do you need to

build in your new deal?

32.  What document is required for any tribal leases that is not required for standard

commercial leases?

33.  Why do dealers escalate service and bundled payments?

34.  When a customer wants to add language to a lease or make changes, where do you

write these?

35.  Who decides if a lessee is tax exempt?

36.  How do you include property tax in a lease payment so a customer will not be billed it

separately?

37.  What does “arrears” mean?

38.  When do you use a Co-terminous lease rate?

39.  Your customer asked you for and was provided a buyout to own quote. The

customer has told you they are interested in proceeding with buying that equipment,

what are the next steps?

40.  Your customer is within 90 days from their lease coming to term and renewing for

12 months.  They have told you they are happy with their system and to check with

them again in a year.  What are the next steps you take?

41.  As a standard rule, when a lease with a $1.00 purchase option reaches the end of the

term, if the customer has not sent in their written notice, how many months will their contract

auto renew for?

42.  A national company headquartered out of Minnesota has an office located in your

territory. You won the deal. The branch has been located at the same local office in your

territory for 20 years.  What address do you put on the credit application?

43.  You are proposing a 60 month FMV CPC deal. You want to fund $9,250.00 and the

CPC the customer will agree to is .0369. Service rate is .012. How many pages per month

will the customer need to agree to in order to make that pricing work?

Offsite (www.offsiteequipment.com)  provides a full suite of services for both independent dealers and national branches.  Our services include:

  • End of Lease Assistance.  Offsite can contact your clients to remind them to send in their Letter of Intent for their old equipment, follow up for return shipping instructions, and manage their return shipping logistics.  If you have a customer who is storing their leased asset in a back closet, this is a great service to offer so they do not miss their LOI date.
  • National network of warehouses available to pick up and store leased assets that cannot be returned early.
  • Lease return shipping and copier moves.
  • Outsourced lease administration, Offsite can process your deals for funding on a per transaction fee thus reducing dealers operating expenses.
  • Program Agreement negotiation, back office consultation, lease sales training.  Increase leased sales %, secure lower rates, increase credit approval percentage guaranteed.

Visit our website today at www.offsiteequipment.com .  At Offsite, we know logistics and we know copier leasing, our services are second to none.

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