Establishing an effective End of Lease approach.

End of Lease

Establishing an effective End of Lease approach.

At Dell Financial Services L.L.C. (DFS), we're here to help our customers. We want to deliver the best possible customer experience, while preserving lease program effectiveness and lowering total cost of ownership. Our proactive approach to technology refresh informs and empowers you, helping you leverage the technological and financial advantages of timely equipment replacement.

Your dedicated DFS Sales team, including an End of Lease Specialist, will provide the tools that make lease termination decisions effortless.

End of Lease Process. At the end of lease term, you generally have three end of lease options. You may purchase the equipment, return the equipment to DFS, or renew the lease. Please notify DFS in writing 90 days prior to the lease expiration date with your end of lease intent. Notice should be sent to: Dell Financial Services L.L.C. Attn: End of Lease Department, One Dell Way, Round Rock, TX 78682, or fax it to 512.723.9819 or email us at US_DFS_EOL@. If you cannot make an end of lease decision by the lease expiration date, DFS will continue to bill you monthly (or your applicable billing period) until you either exercise your option to purchase or return the leased equipment.

End of Lease Administration. DFS maintains resources specifically to assist you with management of leased equipment coming out of the leasing cycle. We feel that one of the keys to an efficient end of lease process is a clear customer understanding of the roles and responsibilities of the end of lease process. Please call us at 877.575.3355 if you have questions regarding this process.

DFS Responsibilities

? Provide timely and accurate renewal and/or buyout information.

? Provide timely and accurate return shipping information.

? Provide timely and accurate invoicing for missing and/or damaged items. ? Offer and explain the benefits of DFS value added service programs (e.g., Return Logistics).

Customer Responsibilities

? Provide DFS with timely notice of end of lease plans.

? If you decide to return your equipment:

? Arrange for Dell's replacement equipment to be delivered to your location.

? Migrate information to replacement equipment.

? Erase all customer data on the hard drives and customer affixed tags.

? Arrange for transportation to DFS returns processing center.

? Prepare and return your equipment to DFS.

? Package equipment properly to guard against in-transit damage.

? Ensure equipment arrives at DFS processing center by Lease Schedule termination date.

No Automatic Renewal Periods. At DFS, we want to make your end of lease process as seamless as possible. That's why our lease renewal period is monthto-month until you decide to return the equipment and terminate your lease, or purchase your existing leased assets. At your request, we will extend the lease for 6 to 12 months at a reduced monthly payment.

Prompt Disposal Cycle Time. Your accounts payable team has nothing to fear from your lease refresh billing. DFS makes end of lease reconciliation easier with our 15-day average cycle time of leased asset receipt to removal from lease invoicing. Minimal Damage Charges. It may seem that some lessors are making a fortune with the missing, wrong and damaged (MWD) charges they bill when a leased asset is returned with nothing more than normal wear and tear. DFS has reduced the MWD charges for our customers - compared to the over 20 damage categories of our competitors

The charts on the following page show the list of our MWD charges as well as two major competitors' end of lease charges.

DFS Missing, Wrong & Damage Charges

Description

Charge

Broken/Damaged Latches

$50.00

Excessive Physical Damage LCD Cracked Beyond Repair

$150.00* $350.00

Missing/Damaged Hard Drive Missing/Damaged Memory

$2.00/Gb $.75/Mb

Missing/Damaged Keys (Notebook) Failure to Boot

$100.00 $150.00

*Will be documented with Digital Camera

Damage

System board Hard Drive

Memory

Missing, Wrong & Damage Charge Comparison

Description

Lessor B*

error indicating system failure

$200-$600

missing, damaged, nonfunctioning drive or drive is smaller than model specification

$150-$250

Lessor C*

$50-$400

$50-$150

DFS*

$150

$2/Gb

missing, damaged, nonfunctioning memory, or memory is less than, or not compatible with system configuration

$100-$200

$50-$100 $2/Mb

Case (plastics)

Display and LCD

Damaged Monitor

Burnt Screen Diagnostic failure Battery CD-Rom/DVD Floppy drive AC adapter Bezel/doors

PCMCIA Adapter Cards

PCMCIA Connectors Monitor Bases Docking Station PC Keyboards PC Mouse Power cords Toner Cartridge Admin Password lock

Desktop $100

$50-$150

N/A

cracks found in case, including but not limited to cracks in lid, base,

keyboard frame, greater than 1/8 inch

Notebook $200 $50-$150

N/A

display or LCD returned with scratches, cracks or screen discoloration

monitor will not power on, or does not display picture, or is physically cracked, shattered, or missing signal cable

lines or characters burnt onto screen hardware failure error (i.e. video, I/O errors) missing missing or damaged CD-Rom/DVD drive missing or damaged floppy missing or damaged AC Adapter missing Laptop Bay Doors

missing damaged or nonfunctioning cards (i.e. modem, network cards)

missing connectors (dongles) missing or damaged swivel bases missing keys, damaged plastics missing keyboards missing mouse missing power cords missing toner cartridge Admin password not removed from machine

$100-$700

FMV

FMV $50-$100 $80-$190 $150-$200 $50-$100

$50 $5

$50-100

$30 $15-$30 $125 or FMV

$25 $5 $8 Not noted Not noted

$250-$400 $350

$25-$225

N/A

$25-$225

N/A

$50-$400

N/A

$50 N/A

$75

N/A

$25-$50

N/A

$35

N/A

N/A

N/A

$50

N/A

$15

N/A

$30-$50

N/A

$50-$100

N/A

$20

N/A

$5

N/A

$20-$30

N/A

$65-150

N/A

$50-$400

N/A

*Comparitive Lessor Charges taken from competitor's websites 3/08/05 and are subject to change without notice. DFS charges above are based on assumption that at least 80% of the items are returned without damage. Prices and charges subject to change without notice due to fluctuating parts prices, availability and newly identified damage.

Equipment Return Services. DFS' Return Logistics provides packing labor, materials and transportation logistics for your end of lease equipment returns. Our program helps reduce the cost and administrative burdens associated with arranging and managing the return of your equipment while providing you with the peace of mind of dealing with a company you can trust.

DFS Lease Return Services integrates the core services of logistics, equipment auditing, and the customer reporting necessary to effectively manage the end of lease disposition process.

Security

? Transported under DFS controlled network of carriers. ? Helps eliminate the risk of in-transit damage.1 ? DFS assumes "in-transit" liability of equipment at

the time of pick up.

Cost

? Volume discounts for large returns. ? Cost determined by number of items being returned and type of products. Contact your DFS representative for pricing.

Time

? Reduce planning and administrative burdens associated with your return.

? Employees can remain focused on their day-to-day business activities.

Convenience ? One-stop shopping to help make your return simple and easy. ? Equipment usually picked up within three (3) business days of request. ? DFS will coordinate your return across multiple sites in conjunction with the delivery of your replacement equipment.

1DFS performs visual inspection of equipment at pick-up. Customer remains responsible for pre-existing damage to equipment prior to pickup.

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