What to Expect From a Copier Lease
Leasing a copier can be a smart move in a number of situations. Low on cash flow? Don’t have a good credit score? Planning on scaling up in the near future? A copier lease is perfect for all these scenarios.
That said, a copier lease involves a pretty strict agreement, which is nowhere near as flexible as the agreement for a short-term rental. It’s important to know what you’re getting into before signing up. This article will fill you in on the important areas to consider and the vital questions to ask to make sure your lease delivers what you need from it.
The Wonderful World of Leasing
A copier lease is an alternative to buying or renting a copier. A lease agreement is drawn up between the supplier and a business, dictating the roles, responsibilities, scope, and length of the agreement. The business pays fixed monthly amounts (plus interest) for the use of the machine and other benefits.
At the end of the lease agreement, the business often has the option to buy the copier at a discounted rate (or fair market value). Alternatively, it can enter into a new lease with a new copier.
The agreement period is longer when you lease than when you rent – up to five years – and the machine remains the property of the leasing company until the agreement ends. The monthly leasing fee ranges from $50 to thousands of dollars, depending on the machine. One benefit of this arrangement is that you won’t have to worry about a depreciating, aging asset that you’ll have to dispose of at a loss sooner or later.
Leasing offers all the benefits of a cutting-edge copier without the hassle and upfront expense of ownership. In fact, the monthly instalments are tax deductible themselves. That’s one of the reasons the copier lease sector is a $4.2 billion industry in the U.S. alone.
That said, there are some downsides to leasing a machine. The longer lease period can be a deterrent, as can the penalties incurred for breaking the agreement early. Copier lease contracts aren’t as flexible as rentals, so a lot more thought and care needs to go into your decision before you sign.
Know What to Look For in a Copier Lease
It’s a good idea to be clued up on the different aspects of a lease agreement before signing. A reliable leasing company will be more than happy to explain what goes into calculating those monthly instalments. That said, it never hurts to know what to ask about. Here are some major considerations.
The Machine
The lease should provide exhaustive details on the copier(s) you’re agreeing to lease. These should include:
- The make, model, and serial number of the copier.
- The current condition of the machine and record of any existing damage.
- Software specifications (including the current version, antivirus software, firewalls etc.).
- Permissible print volumes.
The specs and capabilities of a machine directly affect the cost, so be sure that all details are correct.
Fees and Interest Rates
The fees and interest rates of a lease agreement depend on the provider, the copier for lease, and any added extras. Longer lease periods offer lower instalments, but these can also be deceptively higher than for shorter leases. Leasing multiple machines on a single contract may also be cheaper than multiple agreements. Do the calculations and know what you’re committing to.
A supplier might also ask for an upfront payment to cover installation and delivery. In addition, you can usually also choose to pay insurance to cover any mishaps that might occur during the lease period.
Also keep in mind that some states charge additional taxes that may not be listed on the agreement. Sales tax and property tax are two such examples to be aware of.
Penalties
Breaking a lease agreement early will incur some form of penalties. The cost will depend on the scenario. Ask your print provider about these costs and keep them in mind, especially if the length of your lease agreement might increase the likelihood of you needing to break it.
Excess Usage Fees
Most lease agreements offer more than just the machine. There are a wide variety of extras that can be used to sweeten a lease agreement, such as inclusive repairs, tech support, print services, or printing supplies. However, these extras often come with limitations.
It’s important to check whether your copier lease agreement includes excess usage fees, and how much these might be. Some providers might charge extra for exceeding a monthly print count, or for toner replacement above the agreed amount. These fees can add up, so be careful.
The Maintenance Agreement
A maintenance agreement often accompanies a copier lease as a separate agreement, and adds an additional fee. Sometimes the lease and maintenance periods aren’t the same, which can result in paying for services you don’t need.
Some see maintenance as a hidden and slippery cost, while others appreciate having experts on call when something goes wrong. Maintenance is not offered with every lease, nor is it something you necessarily have to agree to. So, enquire about the maintenance and repairs included in your copier lease before signing, and what the additional fees will cover.
Bundles and Extras
You might be able to secure some bonus features or equipment to go with your copier lease. Some suppliers might throw in additional services or products to sweeten the lease. These extras often make the difference when deciding whether to lease or buy a copier. It’s always worth asking before signing, to see what extra value for money you can get.
Upgrades
Provided your payments are reliable, some print suppliers allow for device upgrades during the lease period. This is useful for staying up to date with the latest technology. However, upgrades may mean increased monthly payments and a higher interest rate. It’s up to you to decide whether an upgrade makes financial sense for your business.
The End of the Lease
What happens when the lease period expires? Some agreements may include options for automatic renewal, offering the same payments and interest rates for another lease period of equal duration. The agreement will also stipulate what becomes of the copier at the end of the lease. This can be to return it, upgrade it, or buy it.
Some suppliers will sell the copier at fair market value, or charge a trivial sum for ownership in the case of capital leasing.
The Right Copier Lease Partner
Of course, one factor that makes the entire copier lease process that much smoother is choosing the best supplier for the job. If you’re in Seattle, Tacoma, Olympia, Yakima, Portland, Tri-Cities, Spokane, Bend, Salem, or Eugene, the ideal partner is Copiers Northwest.
Since 1986, we’ve understood that service and support are just as important as a lease agreement. Contact us today and let our knowledge and expertise help you make the right choice.