Leasing Equipment Can Have Benefits but Watch Out for the Fine Print

Leasing technology is a popular choice for businesses seeking to access assets cost-effectively by spreading reduced payments over time and avoiding the obligations that often come with ownership and asset disposal. However, what starts off as a commercially attractive proposition can become painfully expensive when terms and conditions are introduced that can confuse customers into paying more than they bargained for.

Here are some terms and conditions to watch out for, or risk being caught by surprise, based on feedback from customers who had less than ideal experiences before partnering with Quadrent:

Notice of approaching lease expiry: Ensure your leasing company is contracted to notify you of an upcoming lease expiry well in advance, to ensure you can arrange for an orderly return and/or refresh of the equipment. Otherwise, this could lead to continued payments well past expiry, even if you had wanted to return the equipment.

Holdover clauses: Be aware of leasing companies that will automatically roll over or extend the term of the lease agreement because you haven’t notified them that you intend to return the equipment. Otherwise, you could be locked into extended payments for up to an additional 12 months.

Return logistics: Make sure that the leasing company makes it clear and as easy as possible for you to return the equipment by the required date. To avoid any late return penalty fees. You should expect to return to a local capital city, not some location half-way across the country.

Fair wear and tear: Watch out for clauses demanding you must return the equipment in "like new" or "near new" condition and/or in the original packaging. Also ensure your lessor expects reasonable wear and tear for typical corporate use. This will help avoid any unexpected end of term penalty fees.

It goes without saying that disclosure and transparency are important building blocks in any lessor and customer relationship. Read the fine print carefully and understand all clauses before you sign a leasing contract. Don’t hesitate to ask for clarification on any terms or conditions you don’t understand. Any leasing company looking to build a long-term relationship with you should have no problem explaining them clearly.

Quadrent is recognised as a trusted lessor for over 20 years for several compelling reasons.

Our commitment to transparency and customer-centric practices sets us apart in the leasing industry. We are known for offering clear and competitive leasing terms, ensuring that clients understand exactly what they are signing up for. So, they can be certain of “no nasty surprises”.

We prioritise retrieving the equipment over charging extra fees. The quicker we can get the equipment back from you, the quicker we can refurbish a portion of it to be donated as part of our Quadrent Green Lease initiative that donates laptops to students across Australia and New Zealand who can’t access them for their education. Therefore:

• We remind our customers of their options, by communicating multiple times as the end of the lease term approaches.
• We won’t automatically roll over the contract (no holdover clause). We assume that the equipment will be returned, even without you requiring to give us notice.
• We don’t require you to return the equipment to an onerous location and we understand that the equipment will have some wear and tear. We offer a like-for-like returns policy.

The devil is in the details

Leasing is a flexible and cost-effective way to access assets, but it’s crucial to understand the terms and conditions before committing and most leasing companies don’t explain these properly as it’s not in their interest to do so.

By carefully reviewing each aspect of the lease agreement, asking questions, and seeking clarification where needed, you can ensure that the lease terms align with your financial goals and operational needs. Remember, the devil is in the details—so pay attention to them before signing any leasing contract. The cheapest initial option may not be the best value overall.

Quadrent’s combination of integrity, customer focus, and customer-friendly terms and conditions have made us the preferred choice among many of Australasia’s largest businesses seeking trustworthy and transparent leasing solutions for over 20 years.

Feel free to contact us to view our terms and conditions, we are also very happy to put you in front of customers that can attest to our transparency. Get in touch with us today.