One of the most popular and frequently asked questions is whether a copier lease is better than an outright purchase. For sure, the answer to this question is based on the customer’s preferences, specific circumstances, and budget. The purpose therefore of this post is to shed some light on the differences between a copier lease and an outright purchase and provide a more informed basis for your copier ownership.
What is a copier lease?
It is a fixed payment made every month over a predetermined period of time. This fixed pay is calculated in consideration of the equipment’s price, the agreed monthly servicing, and the price for the labour, the parts, and the toner. The contract for servicing can be done separately but with prior discussion with the vendor before finally signing a contract.
To get a copier leasing service, you will have to get credit approval through a third-party vendor or a financial company. There may be circumstances where you cannot be made eligible for a lease, so it is worth learning about your other financing options for copier ownership. Most of the time, your providers or vendors will be able to lend some helping hand through the entire process.
How Does a Lease Work?
If you are a business looking for a copier leasing for a multifunction printer, by now you may have been asking yourself about the factors involved in getting a lease and how the contract will work. To make you fully aware of contracts like these, here is a walkthrough of the entire process.
So What are the Benefits of Copier Leasing?
- There are no outright expenses
- There is no schedule for depreciation
- This is an easy way to keep up with the modern copier machines
- There is a consistent allocation for operation expense
- There is always copy machine servicing
What are the Two Most Common Types of Copier Leasing?
Option One: One Dollar Buyout Lease
This capital lease or one-dollar buyout lease is more like purchasing a copier machine through a loan. Your fixed monthly payment may be higher if compared to the industry’s fair market value, but you will be given the chance to buy the equipment for a dollar by the end of your term. Companies who plan to keep the copier machine after the lease contract will benefit the most from a buyout lease.
Option Two: Fair Market Value Lease
An operating lease or a fair market value lease will allow you to make use of the equipment for a period with a predetermined monthly payment. You will have the option to purchase the copier machine at FM value, upgrade to a more modern model or return the copier by the end of the term. This kind of lease is usually inexpensive and is often a popular choice for businesses that do not want to store equipment by the end of their contract. An FM value contract will also allow you to deduct your predetermined monthly payment from your operating expense.
What Should You Do Before Signing a Lease?
The most obvious answer is to ask as many questions as you can to your vendor. And to save you time, here is a list of the most important questions that you should get answers for before actually deciding on the kind of lease to get.
How long is the term of the lease?
Copier leasing machines may run 60, 48, or 36 months long. Usually, the longer the contract is, the smaller the payment you need to do monthly. However, you are also more likely to spend more if you calculate the amount from a longer perspective.
Is there always a buyout option?
There is a choice of whether to do a one-dollar buyout or an FMV option. If you go with the FMV, you will be allowed to purchase the equipment by the end of the contract which is often smaller than the actual price in the market. A one-dollar buyout in contrast means that the equipment will be yours for a dollar when the end of the contract comes. While this option appears like the best between the two, always remember that FMV’s monthly payments are usually smaller than those one-dollar leaves. If you are sure you want to do an upgrade or go with a more modern copier machine by the end of the lease, the best option for you will be the FMV.
Is there an option to add to the existing lease?
Many of the leasing companies allow clients to add equipment to an already running lease. The lease payment will then be calculated with the lease terms and changed.
Is the leased equipment insured?
There are copier leasing companies that require clients to ensure the leased copier before actually bringing it to their office. However, it is possible to not ensure the copier machine, but fees are often added to the fixed monthly dues to be able to cover the fee for the insurance.
Can the lease be terminated early?
If the equipment is no longer needed or you need to upgrade to a more modern machine, ask in advance if there is an option to pay off the entire lease earlier than the expected term. Usually, there is a penalty for prepayments.
If you plan to get copiers for your office in Denver, you can buy or lease copiers in Denver. We can give you the option to get the copier that you want. You can contact our local copier leasing services department in your location.
If your Location is around Denver, you may call us at ((303) 416-7100, and our personnel for copier leasing in Denver will assist you. If you are also looking for copier repair services in Denver, you may contact our copier repair personnel at the same number.
If you are on the verge of upgrading to a more modern copier machine or buying a new one for the increasing workload in the office, a copier lease in Denver is a great option to consider, especially since it comes with smaller monthly payments. over time.