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PC World and Rentsmart


pcdinosaur

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Having been advised by PC World that Rentsmart was the best option for me, as I near the end of my contract I find that I would advise anyone thinking of using this system to think very hard.
Rentsmart is nothing but a HP agreement where you dont end up owning the eqipment. But have to pay to post it fully insured and properly packaged back to their Manchester address. You are resposable for all repair bills after the warrenty expires.
I was told that at the end of the contarct I could buy the equipment for a nominal fee. this is incorrect they put a value on it which they say is its auction value. Some joke.
They will let you, though I did not, put anything onto this system. Ink cartriges Paper. Secuirity software. all of this is then included in the final end of contract assesment. God help anyone whos bought desks and chairs using this method.
It may be OK for bigger business but they target the smaller ones who are more in need of hanging on to their meagre capital.
Anybody else suffered by their misleading information.

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wee eddie

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I have never used Rentsmart.

However, I ran a small Restaurant from 1980 until 2005, on a 25 year Lease. Shortly after Taking over the Restaurant, the Company I had Contracted to handle the makeover went bankrupt, with my deposit of 50% of the cost of that Makeover in their Bank Account. All my available Funds.

My Bankers were very understanding, but I had to Lease or throw in the sponge. Over the years I have Leased many types of Kit. Refrigerators, Cookers (a High Tec Cooker can cost up to £3,000.00 these days), Furniture, Vans, Computers & Software Systems.

At the end of the first Leasing Period (Kitchen Equipment) I got quite a shock, regarding the exact Terms and Conditions, which I hadn't really understood, but was advised to send the stuff back, or threaten to, anyway. This I did and their Termination Fee (or whatever you wish to call it started tumbling.

Over the years, one month's Rental appeared to be the figure most of the Companies, I used, were prepared to settle for, but all started from a much higher figure.

There are Tax Advantages to be had from Leasing. You should discuss the possibilities with your Accountant. If you haven't got one ~ Get one asap.

If I remember rightly, to ensure that you do not negate these Tax advantages, you are not allowed to buy the item from the Leasing Company. They have to sell it to a Third Party and you buy it from that Third Party. This is a purely Paper Exercises and they will try to recover sufficient, form you, to cover their Costs on the Transaction.

In general, the last thing they want is a, whatever it is, arriving on their doorstep. It will cost them a fortune to [prepare for Market and Sell, probably much more than it's market value.

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James Turner

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Why do you support a lease for a PC so badly? I am starting to think that you actaully work for a leasing company.

wee eddie, at the end of the contract you WILL NOT buy a PC for one month's rental. You will pay what the owner (seller) wants...if not, you will have to return the old PC to the owner at your cost i.e. packaging, mail/courier costs, insurance etc. The lease company knows this and that is why they ask high prices for the PC at the end of the term. It's simple, the leasing company knows you want the PC...so you will PAY for it.

You will pay a residual value for the PC. Typically, a £1000 PC as new will have a residual value of approx 30% at the end of the three year rental period. Therefore, on op of the monthly payments, the customer has to fork out another £300 to own and outdated and in some cases, almost obsolete PC! Gee you never know though, the leasing company may have you pay £275...what a BARGIN! Not!

Pay cash, own the PC and avoid the headaches...end of story.

Now, I have to go...as I have a business to run.

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wee eddie

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Leasing is a very good way of keeping expenditure in the Trading Account. Many Small Traders do not have sufficient Capital to make a Cash Purchase.

I can't imagine why you imagine that a Finance Company should operate their service for free. They are a Business in very much the same way as you are. They offer a service and charge you for it, what's wrong with that.

If you sign a Contract, it stands to reason that you are obliged to honour it or face a penalty.

If you buy on the HP, you don't own it until the end of the Contract, either.

At the end of the Contract, you return the Item to it's Owner. You may buy it if you wish, the usual figure is one Month's Rental, but they will start by asking for more, of course.

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James Turner

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PC World are paid a commission by RentSmart to sell RentSmart's rental contracts to small business owners.

PC World staff are trained by RentSmart representatives. Either way, do NOT sign any paperwork...take it away, read it...and if you don't like it...don't sign it!

BUY...NEVER be SOLD!

RentSmart's rental contract mean that you (the business owner) pay FOR THE USE of a PC, over a fixed term - usually 36 or 48 months. RentSmart is the owner of the PC.

This is similar to rental payments for a fixed telephone landline...except unlike a landline, a business PC is usually outdated/obsolete within 24 months!

If you need to upgrade to a new PC after say 24 months; under a 36 month rental contract, you must stll 'pay out' the remainder of the contract i.e. 12 months. Alternatively, RentSmart MAY agree that you can upgrade to a new PC...but be assured it WILL COST YOU!

Take my advice. Never pay for a PC via rental. Only use cash (or if absolutely neccesary a bank loan), which means YOU own the PC and can upgrade to a new PC when YOU like.

You still receive tax benefits if you pay cash or take out a bank loan...and you own the PC. When you're ready you can sell your PC...ebay is an obvious choice and use the proceeds towards your new PC!

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jtt

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Just realised that the comment I replied to is over two years old. Even so, back then, a three year old laptop, which is now a five year old laptop, would have sold well on Ebay. Possibly for £300, I can't remember the prices back then.

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jtt

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"A 3 year old Laptop or PC is worth "zilch" on the open market"

Not sure I agree with that. A 3 year old laptop would probably cost over £200 on Ebay.

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Forum Editor

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Perhaps you didn't notice that the thread was posted over two years ago?

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ajm

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As wee eddie has said, call their bluff. Tell RentSmart to collect the stuff. After all it belongs to them, not you.

also tell them that you want an engineer to come and securely wipe out all your data from the computer as you wish to ensure no personal data is on the machine when it gets "auctioned" off.

They will then poersuade you to buy it at a cheap nominal value - perhaps £30-40 is reasonable.

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wee eddie

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So ~ Send it back.

The insurance will only cost you a tenner ~ They have told you how much it needs to be insured for.

They think that they have you over a barrel. Call their bluff.

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pcdinosaur

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Paleao Bill
This is a hindsight thing I know. But if you do the calculations I took out a loan on a van at about the same time, if I had borrowed the extra £800 to pay for the PC and Printer I would have paid far less than the £1330-92 plus the 233-00 that they want for me to keep it or the £30-00 it will cost to send it back fully insured as they state. I am just trying to let others know the pitfals.

wee eddie

Yes I have tried negotiating and I got them down to £176- and they say they wont budge on that. I looked a leaseing the van so I know what you mean about the end bubble price etc. I couldnt afford to lease the van.
For some people Rentsmart may be OK but for one man bands like myself I think when you are fully responsable for the repairs etc which have cost me£135-00 this year the figures dont stack up.
Their leaflet encouages you to buy desks, chairs and filing cabinets etc. how much would it cost to send them back.

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