In today’s world, smartphones have become an indispensable part of everyday work. Companies face the challenge of staying up to date with the latest technology and investing in mobile device fleets. This usually involves very high costs for individual businesses. So, what happens to existing fleets and how can investment costs be reduced? This is where an interesting business model comes into play: Buy and Rent Back (BaRB). This model offers companies new possibilities for their existing device fleets.
But what is Buy and Rent Back?
Buy and Rent Back is a model that allows companies to transition their devices into the Device-as-a-Service model without losing them. To achieve this, the devices are purchased by TKD and leased back to the company for a low monthly rental fee. This enables companies to release capital in the short term without losing direct access to their existing mobile device fleet.
How does Buy and Rent Back work for mobile devices?
The Buy and Rent Back model at TKD can be presented in several phases:
- Inventory Analysis
In the first step, we create an inventory analysis of the mobile device fleet. During this phase, we work with the customer to check the number of devices and identify existing contracts. This analysis forms the basis for an immediate offer.
For customers, this means they receive a precise assessment of the value of their fleet.
- Personalized Offer for Device Purchase
Following the inventory analysis, customers immediately receive a personalized offer for the purchase of their mobile devices. This offer includes not only the value of the mobile devices but also the monthly rental price including our LifeCycle Management service.
A decisive advantage here is immediate availability: customers usually receive the payout for the device fleet directly, providing them with instant liquidity without having to endure long waiting periods.
- Rental Phase and Upgrade Options
At the start of the rental phase, the mobile devices are transitioned into the Device-as-a-Service model. Low monthly rental costs apply for their use, which also include our LifeCycle Management service. This allows customers to continue using their existing devices without any additional effort.
An additional benefit during the rental phase is the upgrade option. After a few months, customers can switch to newer smartphone models. This option allows mixed fleets to be aligned in terms of models and terms, and standardized within a short period of time.
- After the End of the Term
At the end of the (usually three-year) rental term, customers have several options tailored to their needs:
- Extend rental: Customers extend the term of the rental agreement and continue to keep the existing devices.
- New rental offer (with upgrade option): TKD creates an individual offer for new alternatives and provides advice on further possibilities. Customers thus receive the latest smartphones, while the old devices are returned to TKD and transitioned into a second life cycle.
This flexibility at the end of the contract makes the Buy and Rent Back model very attractive for companies. They retain a degree of control over the use of their devices and thus have various ways to continue using their mobile technology or replace it with newer models.
The Advantages of the Buy and Rent Back Model
For companies whose employees use mobile devices, the Buy and Rent Back model offers a range of benefits:
- Immediate liquidity: By selling the devices, companies receive financial resources immediately.
- Flexibility in use: Companies can continue to use the devices, receive all-round service for their mobile equipment, and pay a manageable monthly rental fee for it.
- Technical up-to-dateness: Through upgrade options, companies always stay at the cutting edge of technology without having to constantly invest in new devices.
- Sustainability: By returning old devices at the end of the rental term, they can be refurbished by TKD and transitioned into a second life cycle.
A Flexible Model for the Mobile Future
The Buy and Rent Back model offers an innovative, sustainable solution for handling mobile devices. It enables companies to always have access to their devices while reacting flexibly to new technological developments. By combining immediate sale, flexible rental use, and upgrade options, the entire life cycle of a mobile device is extended and optimized.
If you would like to learn more about BaRB at TKD or receive an individual offer, please feel free to contact us here. We look forward to assisting you.