Yes, I would be happy to share that with you. The Hybrid Lease structure was created to address the difficulties faced by schools caused by the Covid-19 pandemic. The typical FMV structure worked well for Leasing companies during this time at the expense of the schools. For example, parts delays and shortages meant schools were unable to repair and return units on time thereby resulting in extra months of lease payments. In addition, the end of lease FMV pricing was higher due to the tight market conditions costing schools even more money if they purchased units.

CLASS has been working with the education industry for decades. We quickly realized the imbalance, and something clearly needed to be changed. Using our industry expertise, we ventured to create a lease structure from the school’s perspective. We posed the question, “what if we structured a lease from the school’s perspective?” It would protect the school from these pitfalls while also saving significant dollars going forward. The answer is The Hybrid Lease.

Certainly. We realized we could combine the advantages of both Dollar Buy Out (DBO) and Fair Market Value (FMV) lease structures into a single Hybrid lease structure. The Hybrid lease would provide the safety and security of the DBO structure while providing the flexibility of the FMV structure and mitigating its downside risks. Similar to a traditional DBO lease, the lessee will own the equipment at the conclusion of the term of the lease. This allows the lessee to avoid late fees, damage penalties, extra monthly payments and other unforeseen costs often associated with traditional FMV leases. At the same time, The CLASS Hybrid lease structure provides some advantages of a FMV lease structure by allowing CLASS to re-market the equipment to a world-wide extensive network of vendors.

The process has just three simple steps.

1. First, the school pays a fixed monthly payment over the term of the lease, keeping its costs low and consistent.
2. Then, the school will own the equipment at Lease End, but return that equipment to CLASS for remarketing. This enables the school to refresh the equipment and not be stuck with outdated devices.
3. Finally, CLASS remarkets the equipment for top dollar through its vast network of buyers. The school then receives 88% of the remarketing proceeds.

Absolutely! When comparing the FMV to the Hybrid Lease, it is not really comparing Apples to Apples. It is comparing Apples to a Hybrid Apple and the Hybrid Apple is simply better. During the initial Lease selection process, decision makers at the school take many factors into consideration. The lowest monthly payment is not all that is considered. Due diligence includes, background of the company, documentation, end of lease process, fees etc. When looking at the whole picture and comparing the overall numbers between the FMV and Hybrid Lease, though the monthly payments will initially be higher with the Hybrid Lease structure, in the end the math works out significantly in the school’s favor with the Hybrid Lease 100% of the time.

That depends on the size of the lease. With the school receiving 88% of the remarketing proceeds a typical laptop lease for say $500k (500 units @ $1,000) can translate to tens of thousands of additional dollars in the school’s pocket when compared to a similar FMV lease type. We can offer each school a helpful side-by-side visual comparison in advance, based on their circumstances, estimating the advantage of the Hybrid Lease vs. the FMV Lease.

Great question. In short, we are basically moving most of the lease end profits from the leasing company to the school’s pockets. We have also developed a vast network of buyers and end users who pay us top dollar for off-lease units. In addition, we have other creative “out of the box” ways to get more value from the equipment.

That is a fair question. A typical Financial company would not. However, when you truly have the school’s best interest is in mind and not profit maximization, the Hybrid Lease is the best lease structure for a school.

No down payment needed. Only the first monthly payment is required to start the lease.

Precisely. Like a traditional dollar-buy-out lease, the school will own the equipment at the end of the lease. This ownership Title belongs to the school and ensures the Lessor will not be charging them for items such as, lost or stolen equipment, light to heavy case damages, screen issues, late notifications, late returns etc. It protects the schools from these unanticipated costs and high buyout prices they would have faced with a typical FMV lease. At the same time, the school can return any number of units they like to CLASS for remarketing, and we do all the hard work getting top dollar back for the school.

Sure! C.L.A.S.S. is the education division of Corporate Leasing Associates. We have added the School Solutions, hence the C.L.A.S.S. name. The company started in 1982, is family owned and has offices in NY, NJ, and St Louis. The business side caters to Fortune 1000 companies and the education division has been working with schools for close to 20 years now. We have built a stellar reputation in the industry and our goal has always been to form long-term relationships and exceed our customers’ expectations.

Thanks so much for having me. Simply fill out our contact form by visiting https://classleases.com/ or give us a call at 201.862.9667. One of our friendly staff will be happy to get you started!