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PC World and Rentsmart
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Posted February 25, 2008 at 3:21PM
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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Posted July 30, 2010 at 12:05PM
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 Therefore, on op of the monthly payments, the customer has to fork out another £300 to own and outdated and in some cases, almost obsolete PC!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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Posted July 30, 2010 at 1:46PM
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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