Are you not comfortable with the legalese contained in a copier lease agreement? If you are not an attorney or if you do not have any experience securing a copier for your business, an office copier lease might be an intimidating document.
One of the challenges that you may face as you look into a copier lease is navigating a copier lease agreement without sinking. A lot of businesses enter into a copier lease agreement in order to avoid shelling out thousands of dollars upfront to buy a high-end multifunction copier. By signing a copier lease agreement, you will pay a monthly or quarterly fee for your copier over the life of a lease, which is usually three to five years in duration.
When you solicit proposals from copier leasing companies, it is crucial that you know your copier needs. Start with a needs assessment, so you won’t fall for a pressure pitch that may stick you with more copier than you need and an expensive lease bill. You can also avoid copier lease overkill by assessing how many copies you make monthly, and you should do it accurately. If you make 20,000 copies every month, do not lease a copier that is capable of producing 200,000 copies a month. Do not pay for volume that you do not need. This also applies for other features, you can talk to your co-workers in order to know what copier features they need.
It is important that you do not go in blind. It is best to understand the lease terms before you meet with copier leasing companies. It is best to understand the lease terms because it is important to secure a fair copier lease agreement. By grasping the copier lease agreement terms, you will be better prepared to compare copier lease rates and what the copier leasing companies are giving your monthly.
One term that you need to understand is the term “lease term”. This is the time when you agreed to use and to pay for the copier. Leases can stretch from 24 months to 60 months but are usually three to five years. The longer leases mean lower monthly installments but are more expensive overall. If you anticipate high volume usage, you may not want a contract that lasts for 5 years because your copier might not least that long. Your dealer should advise you on the lease length based on the type, volume, and brand of copier.
Another term is “rebates”. Often, copier companies offer promotions to make their lease agreement more attractive than their competitors. Your dealer should tell you about any rebate programs.
Then there is the fair market value. It is not uncommon to sign a copier lease agreement that gives you the chance to buy the copier at the end of the lease. Companies usually buy a copier at the end of a shorter-term lease because the copier is more likely to have some longevity and it is possible that it has not reached a stage of unreliability. The buying price, which is determined by the bank, ranges from 25 to 30% of the original cost of the copier.
Automatic Renewal is also important. Automatic contract renewals are not unusual in a copier lease agreement, and they are a lessee’s nightmare. When your lease is approaching its expiration date, you need to notify the financing company of your intention to return the copier.
If you do not send the lender a letter of intent and tell them of your wish to return the copier, in the specified time frame that is contained in your copier lease agreement, your contract may automatically renew for a year. The renewal means that a year of payments for a copier that you may no longer want. If your service contract and your lease contract are combined, you will be paying for service as well. It is advisable for companies to have a service contract that is separate from your lease. Make sure that you post a warning on your calendar for the expiration date and notify the leasing company.
If you need copiers, you can opt for a copier lease. Copier leasing can help you get the copier that you need. You can contact your local copier leasing service for details.