For years now, TSAChoice has been successfully differentiating itself in the market through leasing agreements. Instead of spending all the money upfront on technology purchases, TSAChoice customers can turn technology investments into small, monthly payments that don’t disrupt cash flow and fit nicely into ongoing operating budgets. Plans like our Technology Assurance Program (TAP) make this process incredibly easy to get started.
For those of you wondering a bit more about the nuts and bolts of this agreement, keep reading. The question I’d like to answer today for customers is this:
“What happens when my lease ends?”
Let’s pretend I’ve been enjoying my favorite television at home for many years. With TSA’s plans, I didn’t have to pay for this TV upfront, I just submit monthly payments every so often so that I can comfortably watch whatever I want for the entire length of my term, say, five years maybe?
And after those five years are up, what now?
This TV is still working great!
What are my options, TSA?
Types of Contracts
Well, it all depends on your agreement. When you worked with TSAChoice’s expert sales team, did you choose:
- $1 Buyout?
- Fair Market Value?
- Or Rental Agreement?
$1 Buyout Option
Let’s say you went with a $1 buyout. TSAChoice calculated a fixed amount for the purchase, installation, and support of your technology system. You pay monthly. And at the end of the payment term (typically 36, 48, or 60 months), you own the system for one dollar. Simple.
The only problem here is that in the ever-changing world of technology if you buy it, it’s yours, and sometimes, technology changes even faster than the timeline of your lease, leaving you with potentially outdated technology BEFORE it’s even completely paid for. Also, once you own it, you’ll need to renegotiate service and support.
Fair Market Value Lease
Perhaps you decided to go another direction, and the sales team at TSAChoice offered you the option for a “Fair Market Value Lease.” In a nutshell, you’re able to “rent to own” a technology system, with the option to upgrade, return, or purchase the system at fair market value after the 3, 4, or 5 years of your lease expires.
- Want to upgrade? Sure. TSAChoice will do a brand new lease for brand new stuff, and you’ll start over with a new system.
- Return it? Okay. Just end the lease, pay applicable taxes, and TSAChoice will come and remove your system.
- Purchase? Yes! Let’s determine what the system is worth after your years of use, and do the deal. Fair market value has its advantages, but at the end of your term, service, leasing, and support do not continue unless otherwise negotiated.
Perhaps neither of these solutions feels right?
Rental Agreement – Technology Assurance Plan (TAP)
Maybe you’re looking for a completely ownership-free option? Pure Hardware as a Service? Is it frustrating to you that every time you buy technology, your purchase becomes obsolete within days? That’s why TSAChoice’s TAP plan is such a great option. You rent the equipment, and never own it, so that you can easily upgrade when the time comes. And every monthly payment you make comes with full service and support from our team.
- With a TAP rental agreement, once the end of your lease arrives, you can just keep paying a slightly modified fee for brand new equipment.
- Or if the equipment is still working for you, you can keep it–we’ll just continue the lease month to month, most often at a deep discount.
- Lastly, you can still return the equipment in this scenario. In fact, TSAChoice will come and remove the equipment for you.
- $1 buyout: Pay monthly, after term, you own for a dollar.
- Fair Market Value: Pay monthly, after term, either return the equipment, upgrade with a new lease, or pay the estimated value of the equipment at the time the lease ends.
- Rental Agreement (TAP): Pay monthly, after term, either return the equipment, upgrade with the SAME lease, or keep on renting at a discount for several more years with all the awesome service and support that TSAChoice provides.