Terminate Your Leases Confidently
At LPRS, our equipment lease experts help you negotiate with leasing companies to reduce lease end costs, typically by 30% or more. With minimal time investment from you and your team, we help to cap exposure and decrease risk and cost. Our outcomes are structured to meet your financial objectives and our fee is transaction-based. We:
- Rate the risk of your equipment lease agreements and provide a detailed analysis of the contract terms that create risk and increase the all-in cost of equipment leases.
- Perform financial analysis including a comprehensive examination of cash flow to define the cost of your equipment lease program.
- Define and cap your company’s financial exposure by negotiating cost reductions and restructuring your equipment leasing portfolio.
End of Lease Negotiations
At the conclusion of your equipment lease, discussions with your equipment leasing company typically focus on:
Fair Market Value (FMV) Equipment Lease Buyout Transactions
When some or all equipment cannot be returned at end-of-lease, the best practice is to avoid costly extensions, define the remaining obligation under the lease, and negotiate a reduction in that obligation or a buyout. To effectively negotiate a reduction in the buyout cost, an analysis of the all-in leasing cost is critical.
Our experts can assist your company with evaluating and reducing the cost of these transactions. Moving forward, our Lease Sourcing can help you properly structure FMV contractual terms for your next equipment lease.
Lease Extensions, Upgrades, and Rolls
Most organizations that lease equipment expect to return equipment at the end of lease – but equipment return is often much more challenging than expected, resulting in extensions or renewals, which can be very costly.
We negotiate with leasing companies to improve contractual terms. Before committing to end of lease decisions, we make sure you fully understand the options defined in your contract.
At the end of lease, most contracts offer limited and expensive equipment return options. The phrasing of these choices in the legal agreements – and even the omission of key language – can lead to long extensions and high lease-end costs.
We specialize in reducing end of lease costs related to equipment return, and improve the contractual terms, which lead to more reasonable equipment return requirements that are a better fit for your operational and administrative capabilities.