Following two to three years of effortless use, you might be wondering exactly what happens to your devices at the end of the lease period.
Many providers, including Lease Loop, offer to their customers options tailored to their specific needs.
What does ‘end of lease’ mean?
‘End of lease’ is simply the date upon which a contractual, fixed-term agreement to use something (often a car, property, or piece of equipment) comes to an end.
Whether you were leasing a car, home, or laptop in exchange for a monthly payment, the item or property must be returned to the owner at this point – unless you choose to extend the arrangement with them.
What happens next after my lease ends?
Typically, with traditional leasing, when your lease ends, you must return the device to the provider.
At Lease Loop, we have two leasing solutions for you to choose from: Our Flex and our Flexscription.
Our Flex is our most popular lease solution, and it attracts those clients who wish to retain the Macs after the lease period has ended. It can be between one and four years, but the most popular lease term is three.
We do offer customers the option to return equipment at the end of a lease, but in more than a decade of operating, that has only happened once.
Why? Instead, we provide to customers the chance to extend the lease forever.
Extend the lease forever
By paying a one–off secondary rental fee (that’s equal to a month’s rent), you can extend the lease forever, allowing you to keep full use of your Mac indefinitely.
Almost all our Flex customer choose this option.
In fact, if they enter a new lease within 30 days of the original lease maturing, we will reduce the one-off secondary payment down to £1 + VAT as a way of saying thanks for the repeat business.
Our Flexscription solution offers customers a different option, one pitched at those who enter a lease wanting to return the equipment at the end of the primary period.
Like our Flex solution, this can be over 1-4 years, and customers also enjoy lower monthly instalments because the rentals are linked to a residual value.
This is where we do something a little different at Lease Loop.
Remember, every client who signs up for Flexscription does so believing they will return the equipment.
However, the data tells us a different story; that is, a massive 93% of people who opt for Flexscription want to retain some level of use of their Macs after the primary lease period.
At this stage, many providers only allow customers to return the devices or buy them at Fair Market Value (FMV).
The trouble with both these options is they restrict customer choices.
What if returning the equipment is inconvenient, or the company can’t afford to lease replacement machines? As for Fair Market Value, we don’t think it’s fair at all.
After using the same Mac for several years, the customer will be charged what the retail value of that device is – a figure that roughly equates to 70% of its original value and feels like a rip off.
Nobody can tell you what this figure will be at the beginning of the lease, exposing your business to greater risk.
So, what does Lease Loop do instead?
Our Flexscription solution provides customers with four fully-costed, transparent end-of-lease options.
These are binding, appear in every customer quote, and are included in lease documents, offering complete cost certainty so customers know exactly where they are.
The four choices:
- Return the equipment
- Enter a rolling monthly contract
We would only recommend this in situations like: Apple is about to release a new model in the coming months and you want to take advantage.
- Extend the lease for 12 or 24 months
Alternatively, you can choose to extend the lease at a reduced rate for another 12 or 24 months, then retain the devices at the end of this secondary leasing period for no extra fee.
- Pay a one-off final payment
Clearly defined at quote stage, this option allows you to retain full use of the equipment. No nasty surprises, or inflated Fair Market Value.
What condition should devices be in when they’re returned?
In line with general IT leasing industry standards, leased devices should be returned in good, working condition.
This means they should be fully functional and returned with all accessories where included, such as chargers for laptop devices.
While our leased devices come with a three-year hardware warranty, this doesn’t cover accidental damage, such as liquid damage or the screen of a MacBook Pro being closed on a charger cable.
If the devices are returned in poor condition, exceeding fair wear and tear, you will be liable for repair costs.
At Lease Loop, all the leasing companies we use also require customers to protect leased equipment with business contents insurance.
Proof of insurance (such as a copy of the insurance documentation) must be provided during the ordering process so it can be forwarded onto the lease company.
If one of your leased devices has been accidentally damaged, we’ll work with you, your insurers, and the Apple repair centre to ensure an efficient claim process.
This collaborative approach helps to minimise disruption to your business operations, getting you up and running as quickly as possible.
What should I do with data stored on a leased device before returning it?
To keep your data accessible and secure, we recommend transferring it to either an external drive or cloud storage solution just before your return the leased device.
This includes all documents, photos, and files, and can even include browser data – such as passwords and bookmarks.
One this data has been securely transferred, you should clear browser data, sign out of all accounts, turn off “Find My” to disable Activation Lock (for Apple devices), and securely wipe the device.
Common mistakes to avoid when returning leased equipment
Leaving data on the devices
Before returning the devices, it’s important to transfer business-critical data to an external drive or cloud storage solution, ensuring you still have access to the required photos, files, and documents.
Failing to disable Activation Lock
If you’ve leased Apple devices, you must sign out of your Apple ID and turn off the “Find My” feature before returning it. Failure to do so will result in the device being locked to you and therefore unusable upon its return.
Returning the device in this condition is known as “Dead on Arrival” (DOA) and will likely incur charges.
Forgetting to return accessories
Leased devices will typically come with all the relevant accessories, such as chargers. However, these small accessories can be easy to overlook when returning the main device resulting in additional fees.
Using inadequate packaging
To ensure the device reaches its destination in good working condition, we recommend returning it in its original box.
Alternatively, you could invest in high-quality packaging materials that absorb shock and adequately protect the contents.
Not contacting the funder
At Lease Loop, we recommend contacting the funder with your agreement number no later than 90 days prior to the last monthly repayment telling them you wish to terminate the lease after this final repayment.
This gives you an opportunity to verify the returns process, ensuring a seamless return that’s completed within the deadline.
Misunderstanding fair “wear and tear”
While leasing companies understand some wear and tear is inevitable, other kinds of device damage, such as deep scratches, cracked screens, and major liquid damage, isn’t considered general wear and tear.
As such, if returned devices feature excessive wear and tear, you should be prepared to pay repair or replacement charges depending on the extent of the damage.
Reducing e-waste through leasing
Between recycling old equipment and reusing 1st life devices, leasing your tech can have hidden sustainability benefits throughout the process – especially at Lease Loop.
Recycling old equipment
Our team starts off the leasing process by offering to buy your existing equipment, which may be outdated or no longer fit for purpose.
Not only does this approach provide your business with extra value and ensure your old devices are securely wiped of private and sensitive data, but it also ensures your devices are properly recycled rather than ending up in a landfill.
Reusing 1st life equipment
If you decide to return the devices at the end of the lease, you can rest assured that this equipment will be responsibly and sustainably dealt with by one of the biggest recycling and repurposing organisations in the UK.
After securely erasing any data, the devices can then be reused or recycled in line with their condition. This greener IT equipment provision model therefore helps to replenish the supply chain and minimise the effect of waste in the environment.
How to get started
Of course, the only way you can return these devices or decide to retain them at the end of the lease period is by starting your leasing journey.
At Lease Loop, we offer two popular leasing solutions – Flex and Flexscription.
Both provide high performance Apple devices complete with 24/7 AppleCare support, and three-year hardware warranties in exchange for affordable, fixed monthly payments.
To learn more about our Apple leasing solutions or to discuss your company’s specific tech requirements, please don’t hesitate to give our helpful team a call today on 01952 876928.
Alternatively, you can also get in touch via:
Email: sales@leaseloop.co
Online: contact form