Heavy Construction Equipment End-of-Lease Checklist

If you’re currently leasing heavy construction equipment, we want to be your partner in saving you time and money when you return it. Below are top tips to end your heavy equipment leasing experience as smoothly as it started — many of these tips include helpful reminders if you’ve leased a machine with Volvo Financial Services (VFS).

1. You should review your equipment lease agreement and comply with contact and notification requirements to your lessor, plus understand the hours allowed for the lease term and the lease return conditions of the equipment. If you’ve leased a machine from VFS, that’s Section 7 of your lease schedule.
2. Many leasing companies require you to contact them a set number of days before the lease maturity date to discuss your end-of-lease options and to set expectations for the end-of-lease process. For example, with VFS you must provide written notice 45 to 90 days prior to the lease maturity date. If you intend to return the equipment but don’t contact us to coordinate the return, you may be subject to per diems (daily rates) up to or even exceeding a full month of lease payments, and we want to help you avoid those costs.

   a. Purchase Option: Be sure to request your purchase invoice prior to the maturity date and pay no later than the maturity date to avoid per diem or full lease payments.

   b. Refinance Option: It’s important to sign and return the paperwork in a timely manner. Most lessors set parameters on this timing. With VFS, paperwork should be signed and returned within four business days from receipt (subject to credit approval). This helps to avoid being charged per diems or full-month lease payment(s) and late charges. If you request the refinance paperwork and then complete and return it prior to the maturity date, you’ll enjoy a seamless transition from a lease to a loan.

   c. Return Option: Contact your leasing company prior to the lease maturity date to coordinate the lease return process. It’s important to return the equipment clean (e.g. free of excessive material) so that the condition of the machine, parts, components and any attachments can be properly inspected prior to the lease maturity date. If the equipment isn’t returned by the maturity date, per diems and/or monthly payments will likely be charged.

3. If you intend to return your heavy equipment, you’ll need to document specifics of which machine(s) you’re returning and by when so you can inform your lender. For example, you’ll need to identify:
   • Each item of equipment to be returned
   • Any attachments (buckets, breakers, claws, etc.) that were leased with the machine
   • The date that each item of equipment will be returned
   • The location where each item of equipment will be returned

   Once these details are identified, contact your lender to coordinate an exact return date and location(s) so your lender can arrange for an inspection of the equipment.

   With VFS, if you indicate you intend to return the machine, a dedicated end-of-lease specialist will contact you to schedule a return inspection a few weeks prior to your lease maturity date. This allows for repairs to be completed and the machine to be available for a final repair verification inspection before the lease maturity date.

   See below for a 360° view of all the points you should check at the end of of your lease:

   Artic Trucks

   Excavators

   Wheel Loaders
   
4. You should complete any maintenance required under the return conditions (see Tip #1), as well as the following before your lease maturity date:
   • preventive maintenance on critical parts and components (brakes, engines, tires or tracks)
   • warranty work (service your equipment based on manufacturer guidelines)
   Again, be sure to return any attachments and clean them and the machine(s) to allow for thorough inspections.
5. As part of many lease return processes, you’re required to:

   a. review the repair estimate representing the costs for your dealer to repair the equipment so it meets lease return standards. If you leased with VFS, we’ll send the repair estimate to you.

   b. respond to your leasing company regarding the repair estimate in a timely manner. With VFS, we require a response within four business days of receiving the estimate.

   c. pay the final repair invoice (typically due upon receipt).

6. You may have options to pay your end-of-lease obligations — for example, a one-time payment or over terms. Check with your lender to understand which option is best for you. With VFS, options are subject to credit approval and via your Smart Commercial Account.

It’s always a good idea to brush up on the return guidelines of your heavy equipment lease agreement from time to time so you can plan ahead, especially if you need to keep the machine longer. Timely communication with your lessor about your intentions can help you avoid unexpected costs or fees — best of all, you’ll maintain a better relationship with your dealer and the OEM long term.

If you’re a current VFS customer with a machine on lease, be sure to reference your Return Guidelines — and as always, feel free to contact us with any end-of-lease questions at (877) 865-8623, Ext. 4077, or remark@vfsco.com.

By Volvo CE and Volvo Financial Services