If your business needs a new copier, there can be many benefits to leasing over purchasing. Some of the benefits of leasing a copier are:
If you have decided that leasing is the best option for you, we have put together a list of common mistakes you will want to avoid:
1. Don’t overpay.
A copier salesperson is similar to a car salesperson in some regards. They will spend the conversation focusing on the monthly rate. They want to know what you can afford per month. This could distract you from realizing that the actual value of the copier is overpriced.
Instead of discussing monthly payments, negotiate the price of the copier as if you were planning to purchase it. Like brand new cars, the list price of a copier is open to negotiation. Once you have negotiated the purchase price of the copier, the salesperson can then calculate your monthly lease payment based on the negotiated price.
2. Don’t include service.
Copier dealers try to bundle a service contract into your lease but say no. Never include service with your lease. If your lease is tied to a service contract but you are unsatisfied with the service you are getting, you will be stuck. Copiers on the market today are more reliable than in the past. It will likely be cheaper to pay for repairs on an as-needed basis than to commit yourself to a service contract.
3. Don’t sign a long contract.
Most buyers should not sign a contract that is longer than 36 months. With a few exceptions, 36 months is the maximum commitment to make on a leased copier. There are a couple of reasons for this:
4. Don’t ignore the expiration date.
Make sure you read and understand your leasing contract. In some instances, the contract may not require the finance company to notify you when the lease has expired. If you keep making payments, your obligations may be extended beyond the original term of the lease. This type of lease is commonly called an ever-green clause, which allows the leasing company to make additional charges beyond the original cost of the equipment. Take ownership of your lease and keep track of your payments. Know when your lease expires.
5. Don’t forget to make a plan for when your lease ends.
You have different options to choose from at the end of your lease. Before you sign your lease, plan ahead and select the option that will best suit your needs. The options at the end of your lease are:
At the end of your lease, you can purchase the copier for $1. With this method, your lease payments will build the highest equity toward the copier. (Note: this is why you negotiated a lower cost for the copier). This option will result in higher monthly payments. Select this option if you believe you will want to keep the copier after the lease expires.
With this option, you will have the right to purchase the machine for a fee of 10% of the original value. Your monthly payments will be lower than in the first option. This option is best if you are not sure that you will want to keep the copier when the lease expires.
If you know you will not keep the copier after the lease expires, choose this option. This option will give you the lowest available monthly payments. At the end of the lease, you will have the option to purchase the copier at fair market value, which is usually a bit more than 10% of the original value. If you choose this option and later decide you want to keep the copier, you may be able to negotiate a lower price. Remember, buying a copier is like buying a car. You can always negotiate.
Ready to make a decision?
Now that you know the mistakes to avoid when leasing a copier and are ready to lease, you may want to fill out our form. We’ll connect you with up to 5 qualified copier suppliers who will give you free price quotes and answer any questions you may have.