About the functionality "device buyout" for leased devices

If you enable this setting as an admin, employees will have the option to buy out their devices. The device's value is automatically calculated based on standard valuation metrics, which you can activate at the category level.

You can customize these valuations to fit your company’s needs or manually set a buyout price for each device. This can be done directly on the device information page or by importing a CSV file. Read this article to understand how the functionality works and what actions need to be taken as an admin for the flow to work correctly. 

This article includes the following topics

• Adjust this setting
• Automatic calculation of buyout prices
  • Default valuation
  • Customized valuation
• Custom buyout prices
• How the buyout device flow looks like for leased devices
• Tips and troubleshooting

Adjust this setting

1. Go to your profile to the right in the navigation bar, click on Settings then End of Lifecycle.
   
   
2. Go to the Leasing tab and turn on or off the toggle called Device buyout depending on what you want to have as available options for your employees devices.
   
   
3. When you enable the toggle, you’ll see additional details about five categories that support automatic calculation. You'll also find information about the CSV import option. Here is where you decide whether to use the automatic buyout calculation feature or custom your buyout prices.
   
   

Automatic calculation of buyout prices

Default valuation

If you enable the category phone for example, you’ll see the default valuation for this category.



The valuation is based on a standard depreciation model and the cost information available for the device in Velory, specifically the 'Company cost' field.

When you enable automatic valuation for a category, the buyout price of all devices in that category will be calculated and updated automatically.

If provided value doesn’t meet your business requirements, you will have an option to:

a) customize estimated value by adjusting some parameters in the customized valuation section

b) override values by uploading CSV with defined buyout values for devices

c) override values manually on individual devices on their information page 

Customized valuation

You can customize the valuation model to align with your buyout expectations for each category. Upon clicking "edit," a window will appear with customizable valuation metrics. 

When you update the valuation metrics, the estimated buyout value diagram will adjust accordingly, allowing you to compare your custom valuation with the default one. Click "Save Valuation" to apply your changes, and the buyout prices for products in that category will be recalculated based on your settings.

Custom buyout prices

To make only certain devices available for buyout, you can update the buyout option and price either through a CSV import or directly on each device.

For individual updates, go to the device page, enable the buyout option, and set the price at the bottom of the page. The assigned employee will then see this price as their buyout option.

For bulk updates, we recommend using the CSV import feature. If you manually set a buyout price (either when adding a device or via CSV), it will stay the same until you update it again. However, enabling automated calculation will override any previously entered manual prices. Learn more about CSV uploads in the article Import of users and device data using CSV template.

How the buyout device flow looks like for leased devices

When the buyout option is enabled, employees can choose to purchase their device for personal use at the end of the renewal period. The buyout option and price will be displayed on the device page as the renewal date approaches — appearing three months in advance for leased devices.

In the first initial step, the user will make a preliminary choice to help the IT team plan for upcoming requests. The decision can be changed anytime within the 2-month period. Making this preliminary choice simply updates the device’s status, allowing the IT team to view the data for better planning.

In the Hardware view, admins can filter devices with preliminary choices to better understand the actions needed for devices approaching their renewal date, ensuring compliance with the leasing contract. This view offers an estimate of the required actions for devices nearing the end of their leasing term.

One month before the renewal date, the user will receive an email notifying them to make their final decision about the current device. This decision is final and cannot be changed, so it's important to be sure about the choice they make.

If the user decides to proceed with the buyout, they will be redirected to the payment interface powered by Stripe (integrated with the device leasing provider) to complete the payment using a personal card. After a successful payment, a receipt will be sent to the user’s email if the leasing provider has enabled this option in their Stripe account.

Once the device is purchased, its status will update to "Active - bought by employee" and the user can continue using it for work until a replacement arrives. After the purchase, the user can visit the store to request a new device.

Once the employee receives the new device, it must be marked as received. Depending on company policies, this can be done by the employee or an admin. Simply click the Mark as received button on the device page to complete this step. 

Before the old device can be used for personal purposes, ensure the new device is set up and all data from the old device is transferred. Once the bought-out device is ready for personal use, the admin must mark it as "released." This step is required to finalize the process and allow the device to be used privately.

Navigate to the device information page and click "Mark as released." A pop-up message will appear. Before releasing a device in Velory, ensure it follows your company's protocol for unused devices, such as being removed from MDM systems. After clicking "Mark as released" again, the device's status will update to "Bought out by employee." It will no longer appear in the employee's active device asset management and can now be fully used for personal purposes.

At this stage, the user will receive an email confirming that the device is fully ready for personal use. It will also be automatically removed from your company’s asset management.

Tips and troubleshooting