Understanding Copier Lease Agreements

copier

If your copier is on the outs, you may be worried about the upfront cost of purchasing a new machine. It is indeed an overwhelming thought and why you should consider leasing the equipment instead. Leasing a copier allows you to spread out payments and switch to a more updated device after your contract ends.

What You Need to Know

When you have decided it’s time to lease a copier you should begin the process after you know what you’re looking for. Questions to ask about your business include: At what volume are we producing copies? Are we copying high-quality images or text documents? Do I need finishing options such as staples or hole-punching? Once you have answered these questions, a copier dealer will be able to direct you to the proper device.

Common Lease Terms

Lessor: The copier dealer you work with will choose a bank or other financial institution based on interest rates and credit approval.

Lease Term: The term is the amount of time you agree to use and pay for the copier. Your lease term depends on a couple of different factors and what works best for your business. Standard lease terms run 3-5 years but can be as short as two.

Payments: This is the amount you will pay monthly and depends on the copier dealer.

Rebates: Rebates are a way for copier dealers to offer promotions to make their lease more attractive. You may seek out those offering rebates in your search for a copier dealer.

Fair Market Value: This will be the price of the device at the end of your device term should you choose to buy it. A bank decides the amount and is generally 25-30 percent of the original cost.

Warranty: If your lease does not include an equipment warranty that’s most likely because it’s added to your service contract, not the financial one.

Know these basic terms will help you navigate a lease agreement. If you prepare before entering a contract with a copier dealer, it can be a beneficial process. If you have more questions about leasing or copiers in general, contact us today!