Toyota Leased Equipment Turn-In Process

During a recent meeting with the used equipment playbook dealer team, we identified an area where our dealer network needs more awareness. We realized there were many questions regarding the receipt of Toyota Leased Equipment at the end of the lease terms. As a result, Josh Smith from Toyota Material Handling Systems (TMHS) provided a list of best practices teams to support Toyota Leased Turn-In Equipment in concert with Tom Wolf’s Toyota Industrial Commercial Finance (TICF) procedures.

The Atlanta Team has streamlined the below process and is openly sharing their best practices.

TMHS Standard Operating Procedures (SOP) for Off-Lease TICF units:

Issue: Trucks come off lease and are not communicated to the dealer to include identifying forklifts that become available unexpectedly in your assigned territory.

Recommended Email Group:

Rental Manager
Used Manager
Rental Coordinator
Rental Administrator
Shipping and Receiving Manager
Used Sales Coordinator
New Sales Coordinator
Sales Admin Manager

Off Lease – Out of Territory and Local – No Replacement Unit

If a truck comes off-lease and is not being extended, the Used Sales Coordinator will notify and work with the local dealer to get the off-leased unit picked up and moved to the local dealer. The Used Sales Coordinator will work with the Rental Coordinator if the unit is local.

Once a truck is at a local dealer/TMHS Branch, the Used Sales Coordinator will email the Off-Lease Group.

The Sales Coordinator will add off-lease trucks to the off-lease listing.

The Used or Rental Manager will communicate if the off-lease equipment is being purchased, and they are responsible for any shipping.

TICF will be in contact with the Used Manager for auctioning off unwanted off-lease equipment.

Off-Lease Unit – Out of Territory and Local – with Replacement Unit

If a truck comes off-lease and is being replaced, the New Sales Coordinator and the Rental Coordinator will work to get the off-lease unit picked up and moved to the TMHS branch. If out of territory, the New Sales Coordinator can have the unit moved to the local dealer.

Once the truck is at the TMHS branch, the Rental Coordinator will email Bill of Lading (BOL)/Pick Up correspondence to Sales Rep and Off Lease Group. If an out of territory dealer, New Sales Coordinator emails BOL to Off Lease Group.

Sales Coordinator to add Off Lease truck to Off Lease Listing.

The Used or Rental Manager will communicate if off-lease equipment is being purchased.

If the unit is not being purchased or no communication is given, off-lease equipment should be sent for storage.

TICF will be in contact with the Used Manager for auctioning off unwanted Toyota off-lease equipment.

Tom Wolf (TICF) has also provided the TICF Lease-End Procedures Flowchart and Guide to support their requirements.

LEASE END PROCEDURES:

TICF Off Lease Process (below)

Toyota Leased Equipment Turn-In Process 2

TICF LEASE END PROCEDURE GUIDE

To better manage the lease-end process, increase dealer awareness, and provide excellent service to our mutual customers, the following lease-end procedures should be observed:

In accordance with Item #1 of the Ritchie Brothers Integrated Return and Auction Site – Participating Dealer Agreement, “Dealer agrees that it will use Ritchie Brothers Integrated Return and Auction Site to ground all off-lease equipment returned to their dealership.”

Equipment should be grounded on the date of the bill of lading. In certain circumstances (late in the day delivery), the following day is acceptable. This will signal Toyota Industries Commercial Finance (TICF) to terminate the account and prevent the customer from receiving further invoices.

Dealers that do not ground promptly will be responsible for any payments generated between the date on the bill of lading and the actual grounding date.

Dealerships are responsible for their entire terminating lease portfolio. If a unit is returned to a different dealership and the selling dealer does not ground on time, the selling dealer is responsible for any lease payments generated between the date on the bill of lading and the actual grounding date. Communication between the selling (grounding) dealer and the ship-in dealer is incumbent upon the two dealers.

Dealerships should use portfolio reporting to track upcoming off-lease activity. TICF is not responsible for non-notification of the presence of off-lease equipment between dealers, resulting in the late grounding or termination of equipment.

ATTENTION (DEALERS REFINANCING UNIT TO THE SAME CUSTOMER): If the dealer is refinancing a unit with the same customer, the dealer should not ground the unit. Please be advised that the dealer must obtain a payoff from TICF_Payoff_SM@toyotacf.com (which includes all open receivables). This will prevent the customer from having open receivables due on two (2) accounts for the same unit.

FOR MORE INFORMATION, PLEASE CONTACT YOUR REGIONAL SALES MANAGER.

Mark your calendars and join us on December 13 at 1 PM for a Lease Turn-In Webinar. If you have any additional questions, you can reach out to TMH Dealer Development Manager, Marty Bartlett, at marty.bartlett@toyotatmh.com, Josh Smith at TMHS jsmith@atlantaforklifts.com, or Tom Wolf at TICF Tom.Wolf@toyotacf.com.