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Understanding vendor agreements is crucial. A missed letter of intent can lead to automatic renewals, while long-term contracts may include annual price increases. Additionally, structured leases can cause result in equipment ownership. but be cautious of hefty fees associated with early buyouts.
If a letter of intent is not give to the vendor within a certain period of time, they can RENEW your agreement without your consent.
If you have a 60 month agreement, the vendor can still increase your monthly payment annually.
If a lease is structured appropriately, you can actually OWN the equipment at the end of the term, making it easier to switch vendors.
If you ask for an early buyout, your vendor may charge thousand of dollars for you to get out.