Getting Out of a Bad Copier Lease
November 26, 2013//Comments Off on Getting Out of a Bad Copier Lease
Getting out of a copier lease is something that many people want to do. Getting out of a copier lease can become difficult. Why? The copier lease is generally done through a bank, banks are good at collections – and they don’t necessarily want to give you a free ride. So if you are stuck in a bad copier lease, what can you do?
Steps to consider if you are in a bad copier lease:
- You can always try calling the bank or copier company and see if you can re-negotiate the lease. More often than not, this will not lead you anywhere meaningful
- You can see if sub-leasing is an option and then find someone willing to pay part of the bill. It’s better to lose $200 a month than it is $500 a month. The problem is you are not a copier sales rep, so you may have struggles getting the deal closed.
- You can wrap in the old lease into the new lease, but generally if you do that you are just financing interest payments too, compounding the issue.
- Example: Your copier lease is $500 a month and you have 2 years left on it. So, that is $500X24 = $12000. Wrapping this $12000 into the next copier (say the next copier is $175 per month ($8750 copier) – Now the $8750 needs to add on the $12000 to make the numbers add up – $20,750 ($415 per month) – So yes you can get a new copier with a lower payment, but you are paying $415 for 5 years rather than $175 for 5 years – meaning the $12,000 =$14400 after interest. The problem just compounds.
- Keep Paying off the copier and see if you could perform Kinko’s like services for business friends. If you are paying $.07 per color sheet, advertise that you’ll do color for people for $.24 per page. The $.17 per page – If you do just 1000 prints per month will equal $170 in the bank you can use to pay on the lease.
- Write it off as a loss – This is what most people ultimately do
- Declare bankruptcy – If all else fails, bankruptcy could be an option. Obviously a silly one if you have a year left at $300 a month. May be a better idea if you have 3 years left and 5 copiers at $300 a month.
Hope this helps, leases are legal contracts with a bank (generally), so they are certainly difficult to get out of with a lot of skill. You can always have a lawyer look over your contract too… but if it is from a major bank, that is a waste of money generally as they have their own attorneys going over these details.