Although copier leasing is among the simplest financial documents that your company will ever execute, many businesses continue to misunderstand them. By avoiding these copier lease pitfalls, you will ensure that your company can save money and make the best copier choice for its needs now and in the future.
With this in mind, a copier lease in Denver has compiled a list of the five most common pitfalls associated with copier leases that your company should avoid.
Purchase options
In most leases, the lessee has the option to buy the copier at the end of the term. You can expect a fair market value (FMV) purchase option as long as all financial commitments are made. It’s worth noting that, while the vendor or lease company ultimately sets the price, the lessee can frequently negotiate a lower one. Make sure to request guaranteed purchase price options when signing your new lease.
Shipping charges for copiers
When you notify the lease company that you will terminate the lease at the end of the term, they will make a note to send you what’s called a Return Authorization, which is a fancy way of saying shipping instructions. These instructions will tell you where the copier should be shipped and when it should be received in order to avoid financial penalties.
Do not sign a lengthy contract
You will have several contract lengths to choose from when discussing your lease agreement. Your copier dealer may suggest longer terms. However, keep in mind that most buyers should not sign a contract for more than 36 months. With a few exceptions, the maximum commitment you should make on a leased copier is 36 months.
Don’t ignore the “service agreement”
It’s common for copier deals to include a service contract as part of the lease. However, many businesses looking to lease are unaware that they can opt out of adding service and maintenance. You have the final say on whether you want to include service and maintenance for convenience or handle it yourself. If your lease is linked to a service contract and you are dissatisfied with the service, you will be forced to pay for it.
Surcharges for Insurance
When you lease a copier, you must name the copier leasing company as the sole loss payee for the value of the copier. In almost every case, you can add the copier to your existing business insurance policy with a simple phone call to your agent, and in most cases, it will not increase your insurance rate at all. However, suppose you fail to add the copier to your current insurance. In that case, the lease company will charge you an insurance surcharge of $5.00 – $10.00 per month to cover the copier’s insurance.
Cost increases on an annual basis
When you lease a copier, the company you select has the option of incorporating annual price increases into the monthly payment, and they can determine the amount of these increases. Unnecessary increases in price are something you want to avoid when leasing a copier. We do not include annual increases in our leases, but many companies do, and as a consumer, we encourage you to ask this question when shopping for a copier lease to avoid these annual price hikes in your lease payment.
Are you ready to make a choice?
Clear Choice Technical Service can assist you in finding the right copier lease agreement for you now that you are aware of the mistakes to avoid when leasing a copier. We will put you in touch with up to five reputable copier suppliers who will provide you with free price quotes and answer any questions you may have.
Contact us at (303) 416-7100 for more information and schedule a same-day appointment today – we’re eager to assist!
If you are in Atlanta and you are looking to buy a copier for your business, you may contact Clear Choice Technical Services in Atlanta. You can ask about Copier Leasing Services in Atlanta, Copier rental services in Atlanta, and Copier Repair in Atlanta.
