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Notification requirements
Our standard contract requires that you notify us of your end of lease (EOL) decision at least 30 days prior to the lease expiration date. Notification through a consistent process will facilitate accurate accounting for your decisions by your organization and by IBM Global Financing. As a result, we recommend that decisions be communicated via the IBM Global Financing Customer Centre tool * (End of Lease module currently available only in US) if possible. If not, all EOL decisions should be communicated via written communications either by sending an email to Askeol@us.ibm.com, or by returning the hard copy of the End of Lease Supplement to our Fax Number (1 800 677-5209). If we do not receive timely written notice, the lease will automatically be extended according to the terms and conditions of your lease contract. Also, always fill in the receipt date on your conclude notice with the date that you expect the equipment to actually be received by IBM Global Financing.
* For information regarding the Customer Centre tool and how to register, please visit http://www.ibm.com/financing/us/lifecycle/manage/customercentre/index.html, or contact your End of Lease Account Manager directly.
Your end of lease options
Many of our contracts provide terms with notification of approaching lease end. At least 60 days prior to end of lease, a list of assets coming due will be made available online on the Customer Centre tool * or mailed. Each asset has a description, machine type/model, serial number, EOL options and prices. Our standard contract allows for decisions by leased asset or for an entire schedule. This flexibility allows you to select for specific users or groups.
Consider the following options when making your decision:
Option 1: End of lease purchase
We recommend the purchase option for customers whose equipment will continue to meet their requirements for an extended period of time.
Option 2: Extend on a monthly basis
Monthly extensions are available to those who are uncertain as to the installation date of the new equipment. This flexibility allows you to return the equipment with just 30 days’ notice.
Option 3: Renewal
PC lease renewals are available for 6, 12 or 18 months beyond the end of lease date and Non-PC lease renewals are available for 12, 24 or 36 months beyond the end of lease date. A customized transition renewal of a period different than these standard terms is also available upon request, to provide you with additional flexibility. As stated, notification of your intent to exercise these options is required at least 30 days prior to the lease expiration date.
Option 4: Return until end of lease date
Provide the necessary notification and return the machines until end of their lease.
Important: Many lessees mark "Return" on their supplement even though they know the rollback will extend beyond the original EOL date. Customers tell us they do this simply to make sure they have satisfied the written notification requirement in their contract. When you tell us that you have chosen to return the assets 30 days prior to end of lease, we stop your billing as of the original EOL date, unless you also provide us with a return date in the space provided.
If the billing is stopped and the asset is not received at the IBM Global Financing Returns Center when due, the billing will be reactivated. There are two ways to avoid that additional expense:
- Sign up for a short-term transition renewal period, either choosing the six-month renewal or arranging a custom renewal by calling our hotline.
- Write or type in the return date when we can expect to receive the equipment. If you supply us with a date, we will stop billing based on the planned return.
As indicated in the next section, we recommend planning your return to coincide with the last day of the month to eliminate partial-month billing. While changes in the planned date may still occur, it will simplify your end of lease billing significantly.
We can help with end of lease decisions
Our specialists are available to answer your questions and help you manage your portfolio. Possible solutions include customized lease extensions, base lease extensions associated with hardware upgrades, and conversions to full payout leases.
Please call our end of lease department at 1 800 IBM-3552 for more information on how we can help.
IBM Global Financing offerings are provided through IBM Credit LLC in the United States, IBM Canada Ltd. in Canada, and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client’s credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.
