Should I Trade Up My Copier Lease?
You are probably at about 6 months before the completion of your copier term. Let’s say your contract is $200 per month currently and your copier company has called and told you how you can upgrade now and pay less. That sounds good, right? It may be, but you may have something else happening. It is good to take offers like this if you are ready to put a hammer through the copier. Not as good of a deal if you are generally happy.
So how does a copier lease work anyway?
When you are leasing a copier, the basics on how the transaction works are as follows.
- Copier company determines what copier suits your needs
- Copier company works using a lease rate factor times the financing amount to determine the monthly costs.
- Copier company sends you a contract you sign and then you make payments.
- Copier company is paid at the beginning, not month to month. This means the copier you have that is 4.5 years old, they got their check from the bank back then (unless they self finance).
- So with 6 months left, copier company comes to current clients for upgrades. Why then and why not wait? There are a few reasons.
- If they quote with 6 months, it adds 6 months, plus their maintenance fees if a competitor is to take over the account, just the equipment for them.
- They can negotiate deals where the buyout amount is HIGHER for everyone else than it is for them? How? Well they are the ones bringing the bank that business.
- Both of these practices give the copier company a competitive advantage when it is time to upgrade!
- Copier company takes remaining payments due and rolls them into your new lease.
If you are happy with your copier, wait. It is better for you if you negotiate without the existing debt. If you are unhappy and it is hurting your business, you have to do what you have to do.
Please give us a call or fill out out form if you have copier leasing questions!