The Rental Purchase Option (RPO) program allows owners to sale their equipment for top dollar. Renters are incentivized to use this program as it allows them to vet equipment on the job while applying rental dollars to reduce purchase price.
The Rental Purchase Option program is just a better way to sell your equipment. Auction prices are low and conversion fees are high. The RPO program was designed for both the owner and renter. Owners are able to set their purchase price and renters can thoroughly vet equipment during a rental cycle. Let's take a look at how it works.
Your Purchase Price
The purchase price or RPO price can be set for each machine in your fleet. The purchase price should be at least 10% greater than the cash or insurance value of the equipment. This will allow the renter time to vet the equipment while making sure the price does not drop too low. If the renter chooses to execute the purchase option, 80% of their rent will be applied to the purchase price. An accurate purchase price must be set before the rental begins as you cannot adjust this during the rental.
Rental Deduction 80%
The primary incentive for the renter is to vet the equipment all while applying a portion of their rent to the purchase price. The program allows the renter to deduct 80% of their rent during the first six months of the rental. Regardless of whether the renter executes their purchase option, the owner is still paid their regular commission during the regular rental cycles.
Conversion Fee
The Rubbl conversion fee is minimal at 7.5%. Auctions can charge up to 20% on top of low purchase prices and freight charges.
Owner Repair Credit
The owner repair credit will be determined at time of purchase. This credit is in place to account for any large repairs performed during the rental. This is an optional adjustment to the purchase price so the owner is compensated for the increased value of the equipment.
Calculation Simulator
Ok, so all of this is a lot to contemplate. That is why we created a simple calculator for you to see how much your sale will net you out the door. Set your purchase price first and then choose a rental duration between 1 and 6 months. The calculations will be performed automatically for you. The only wildcard in the mix for you will be repairs that took place during the rental that increase the value of the equipment. We will work with you to determine this increase so that it is fair to the renter and you. After all, we're trying to sale your machine with you, right?