What are my options when my lease matures?
- Renew the lease (extend the original lease for an additional period of time)*
- Purchase the equipment outright
- Finance the equipment on an installment loan*
- Return the equipment to the dealership
It is our policy to mail a written notification of matured lease options to customers a few months prior to the maturity date of the lease. This correspondence includes a request to indicate your choice of options and then asks you to return the form to John Deere Financial.
*For qualifying customers only / subject to credit approval.
What is a payoff quote?
A payoff is the amount you need to pay if you wish to terminate your lease prior to your maturity date.
Can I payoff my lease online?
In the event you desire to pay off your lease, do not make payment online. Please call 1-800-771-0681 to obtain instructions for paying the payoff amount. At the time of your call, we will make arrangements to provide you with documentation to transfer the equipment title to you.
What are Excess Use hours?
Each lease is written with a number of hours the equipment is allowed to be used during the term of the lease. This hour usage limitation is stated on the Master Lease Schedule that came with your packet of lease documentation. If equipment is used for more than this hour limit, there will be excess use hours on the lease. There is a per-hour fee to be charged for Excess Use hours. The per-hour fee is also stated in the Master Lease Schedule. This fee will only be charged if the unit is returned to the dealership. Purchasing the equipment, financing the equipment or renewing the lease do not trigger this fee.
Who do I contact for the payoff on my lease?
Payoffs are handled by the lease customer service team. Please contact them at 1-800-275-5322. Please have your account number, business name and address and be ready to answer questions to validate your identity. The security of your customer information is very important to John Deere Financial.
What is my purchase option?
If your lease contract is written with a stated purchase option, it is stated on the Master Lease Schedule which came with your packet of lease documentation. If your lease is written with a Fair Market Value (FMV) option, there will be no stated purchase option. You will have to call Asset Management for this value. Please note that neither of these options are the final payoff if you choose to purchase the leased equipment at the end of the lease. The final payoff may include property tax, sales tax, outstanding payments or any past due amounts owed from previous late payments. Please contact the John Deere Financial Asset Management team at 1-800-488-8732 to request a payoff. Have your account number, business name and address and be ready to answer questions to validate your identity. The security of your customer information is very important to us.
Why does my purchase option stay the same if I do not use the equipment for all of the hours I requested?
Your lease was written with an assumption of the value it would have at the end of the lease given the hours of use, proper maintenance and expected condition the unit would be in if returned. Any over-use must be taken into account at the end of the lease. Over-use is accounted for with the Excess Use hour charge. There is no adjustment for under-use. It is your right, however, to purchase the equipment to take advantage of any perceived equity due to the lower hour usage.
What if I am done with my equipment before lease maturity?
The lease was written for a certain term and certain hours of use and maintenance expectations. At times, hour limitations are reached or a job is completed before lease maturity. To return equipment before lease maturity, check the equipment for damages that are your responsibility to repair and complete these repairs, clean the equipment, then keep it safe until it is returned to the nearest John Deere dealer. Inform the dealer you are returning leased equipment and ask for a storage receipt dated and noted with the hours on the equipment as proof of the return. Call John Deere Financial Asset Management at 1-800-488-8732 to notify them of the return. Please note that all lease payments must be made before your lease obligation is complete, even if equipment is returned before lease maturity.
If I return my leased equipment, when is it inspected and when will I know if there are damages I am responsible for?
On average, leased equipment is inspected by a qualified dealer service technician or third party professional within 30-days of being returned. The inspection information is submitted to John Deere Financial Asset Management, who reviews it for damages or excess use. If there are any billable charges, normally you will receive an invoice within 45-days of equipment return.
What if I have the need to use the equipment after lease maturity?
As your lease approaches maturity, you will receive a letter from John Deere Financial Asset Management notifying you of the upcoming lease maturity and presenting options. One of the options is to extend the lease through a lease renewal. If you wish to extend the lease for a time period different than the term options quoted in the lease renewal offer, please contact the Asset Management Administrator using the phone number and extension in your lease maturity letter.
Can I walk away from my lease?
The expression 'walk away' implies that the intent is to return the equipment before lease maturity, stop making lease payments, and consider your obligation complete. This is not allowed per the lease contract and is considered an act of default. If you have a situation where you must return the equipment, begin by contacting your John Deere dealership. They can help by reviewing your situation and contacting the proper area at John Deere Financial to provide assistance. If you want to contact John Deere Financial directly, call Lease customer service at 1-800-275-5322 and explain your situation.
Is there a pre-payment penalty if I pay the lease off early?
Lease termination before lease maturity is handled on a case-by-case basis. In most cases, a termination value rate (TVR) is used to calculate the payoff amount. The remaining payments and purchase option (stated or assumed) in the lease are discounted to the present value as of the payoff request date. John Deere Financial has one of the most favorable early payoff processes of any major leasing company.
When will I get my security deposit back?
The security deposit may be returned after the equipment is returned and inspected for damages and all payments, bills and fees have been settled. If the equipment is purchased, the payoff amount is reduced by the amount of the security deposit. You can expect to receive your security deposit in approximately 6-weeks.
Am I responsible for maintenance and repairs on my leased equipment?
Yes, as the Lessee, you are responsible. The owner of the leased equipment is the Lessor (John Deere Financial) during the lease term, but since the Lessee (you) has possession of the equipment during the term of the lease; the lease contract passes all obligations of equipment maintenance and repair to you.
What if I want to convert my lease to a retail note at lease maturity?
For Ag and Turf customers contact your dealership. For Construction and Forestry customers, contact Asset Management at 1-800-488-8732.
When I payoff the purchase option on my lease, will I receive a confirmation form?
A confirmation of payoff form is not normally sent when a lease is paid off. If one is required, please contact Lease Customer Service at 1-800-275-5322.
The asset descriptions listed in my lease invoice are not clear. How do I get a better description of my leased equipment?
Please call Lease Customer Service 1-800-275-5322 or Asset Management 1-800-488-8732 for assistance.