One of the questions that decision-makers ask before signing a lease is about what they have to do to get out of their lease and what they are really agreeing to. Operating lease or Fair Market Value are leases that let you get a piece of office equipment at a good price. The reasons why someone would want to get out of a lease are numerous, it could be because of lease rate increases, poor service, desire to upgrade the equipment, can’t afford the payments and more.
Before you sign a lease, you should read your entire office copier lease again and again if possible. You must check every single detail before you sign anything. If there is a terminology that is stated in the lease that you are not familiar with, you can ask the representative for clarification or further explanation. If they are not able to adequately answer your questions, get them to provide you a contact who can explain it to you.
It is also best to understand the standard office copier lease language. Despite what a representative might say, the terms and conditions on the lease are what you agree to.
Check the lease terms and conditions. You agree that this agreement is a net agreement that you can’t cancel or terminate. You have an unconditional obligation to make all payments due under this agreement, and you can’t withhold, set-off or reduce such payments for any reason.
Check the agreement. Your monthly base payment obligation is unconditional and it is not subject to any reduction, set-off, defense or counterclaim for any reason whatsoever.
Always look for terminologies because once you sign an FMV/Operating lease, you are on the hook for the entire term of the lease.
What if you end your fair market value lease term early? What does it mean if you want to terminate your lease? First, you must check the terms and conditions of your lease. If you must terminate your lease even if the term is not up, the only way to completely get out of the lease is by paying the remaining terms left on the lease. This does not mean just the payments.
Also, you are on the hook for service if the service portion of the agreement is added to the lease payment, sales taxes, return fees, property taxes and any late payment penalties owed.
When the current vendor that you are working with buys out a competitive lease, it does not magically go away. However, there are four ways a great office technology company can mitigate or reduce the loss to you. They can do so by reducing the cost of their goods to you to offset their buy-out. What is a buy-out? A buy-out refers to an agreement where the lease of your existing equipment is given up for the remainder of its contractual term. This buy-out agreement voids the existing lease while also providing you with a new lease agreement through your new vendor.
Using Marketing Development Funds or marketing dollars provided by a manufacturer or rebate passed on directly to you. MDFs are used by vendors in an indirect sales channel to help their partners pay for the necessary tools or equipment to sell the vendors’ services or products.
Providing some type of incentive based upon the total dollar spent. Whatever amount is left on the old contract is reduced by a certain percentage that offsets your lease, based on how much the new equipment or service costs. Allow your current or older lease to roll over into the new lease that they are offering for their services and products. The existing equipment can transfer over to the new lease provided by the new vendor that you are choosing to partner with.
For you have more questions about a lease, you can contact your local leasing company. For example, if you need a copier in New York, you can contact New York at (718) 583-0098. They can assist you with copier lease in New York, copier rental in New York, or copier repair in New York.
