A copier lease is a legally binding contract between you and a leasing company that obligates you to pay for your copier equipment for as long as you own it. But what would happen at the end of your lease agreement?
For some instances, you lease your copier and come to the conclusion of your contract. Maybe you are wondering, What happens when your contract expires? Are there any more steps to consider?
This article was made to answer your questions, delves into the many forms of multifunction copier leases, and hopefully equips you with the knowledge you need to understand at the end of your lease.
Lease are not created equally
There are three basic forms of leases, plus a fourth option for refinancing. Before anything else, we get into the different sorts, it’s vital to remember the importance of lease and service agreement will determine what you can and/or should do.
Examine your contract text to ensure that you understand your cancellation policy because if you don’t inform your lease or service provider in writing this will result in extension of agreement for another 12 months.
The agreement will also specify how early or late you can provide notification, however many companies require written notification no sooner than 90 days and no later than 60 days before the agreement expires.
Different Types Copier Lease
You can choose from three different leases:
Fair Market Value
This type of option is very popular because you get new equipment at the conclusion of the lease. This is analogous to the concept of trading in your car for a new one.
The company will evaluate the value of the old equipment you’ve been leasing and offer you a discount on your new equipment. In most cases, the final result is a lower monthly payment for superior equipment.
So, you may be thinking of trading equipment to lease new equipment for less. But it doesn’t make sense at all. Your service contract is where you save money. Simply put, because new machines break down less frequently, dealers will charge you less for service because it costs them less to service your machine; but, your service price may rise incrementally as your machine ages.
The real cost of the new equipment will be more or equal, but the service will be less expensive, lowering your overall cost.
Purchase option not available
It’s exactly what it sounds like: no purchase. You signed the lease agreement without any intention of buying the equipment at the end. A no-purchase option is essentially a rental.
Option includes, return the copier or continue to rent it from your leasing company at the conclusion of your term agreement or contract. This alternative may be advantageous for enterprises who do not want to buy their computer, however renting a machine for an extended period of time is not suggested.
Here, the real cost of the new lease copier will be more or equal, but the service will be less expensive, lowering your overall cost.
As a consumer, the dollar buyout is the choice you should avoid the most. It’s the best solution for the merchant but the worst for you.
A buyout simply implies that you pay one dollar to possess the machine at the conclusion of your lease. On the surface, that sounds fantastic, but there are a handful of reasons why it isn’t:
- The lease rate is far higher, and acquiring the machine outright would be a far more cost-effective purchase.
- Because of the way the lease is structured, you won’t be able to write off the purchase like you would if you bought the machine altogether.
When money got tight during and after the epidemic, many homeowners sought to refinance to stave off mounting bills. However, refinancing isn’t simply a good option for homeowners.
Businesses are also negotiating fresh leases with copier sellers for older equipment. On a three-year lease, or by the third year of a five-year contract, this is more common.
The advantages of this option include a lower monthly payment and the ability to “skip” a payment from the end of the old lease to the start of the new one due to the structure of new leases.
Finally, before signing a contract, strive to establish a relationship with your dealer representative. You can quickly tell who is genuinely interested in assisting your organization and who is simply looking to make a fast cash.
You can avoid unpleasant surprises at the conclusion of your copier leasing by asking questions and understanding the specifics of your contract/agreement.
If you are in Little Rock and you are looking for a Copier in Little Rock for your business, you may contact Clear Choice Technical Services in Little Rock. You can ask about Copier Leasing Services in Little Rock, Copier rental services in Little Rock, and Copier Repair in Little Rock.