If you're coming up on the end of your business copier lease, you might wonder, "What do I do now?" It's never good to be in the dark regarding your office tools. But don't worry- you are in the right place to get your desired answers. When it comes to the end of your lease, you have a few options.
Step 1: Find a Good Managed Print Service
A decent managed print provider will offer ongoing support with any equipment purchased through them. They should assist you in finding the right copier for your needs, service the equipment, and, when your lease is up, consult you on the best course of action.
Look for print specialists that are experienced, knowledgeable and well-equipped with the resources to assist you with any questions regarding copier leases and copier leasing companies.
Step 2: Understand What An Office Copier Lease Is
It's important to know about the different kinds of office copier leases. Your chosen print specialists will walk you through the most common options available to you after your print lease is over.
The type of lease agreement you have could change your copier's lifetime. This will help your business to feel prepared when it's time to decide how you want to manage the end of your lease. Here are some of the different office copier lease options you have.
The Dollar Buyout Lease
Other names for the dollar buyout lease agreement are a capital lease or a finance lease. With this lease, you agree to pay a higher monthly fee for your copier than you would with a fair market value lease. You pay more because you can purchase your copier at the end of the lease and have full ownership for just $1.
This is typically a good option for companies that want to own their equipment but don't have the financial ability to make large down payments upfront. The downside to this lease is that it is likely already outdated by the time you own the equipment. This may lead to more issues. Not to mention, parts for older copiers are harder to find. So, if your copier breaks and needs a new part, it could be much more expensive to fix if you have an older machine.
The Fair Market Value Lease
The fair market value lease, also known as the FMV agreement, tends to be more common than the dollar buyout lease. With a fair market value lease, the monthly payment is less every month than the dollar buyout lease.
You pay lower interest on the equipment than you would the dollar buyout lease because you do not keep the copier at the end of the lease. Instead, when the lease ends, you'll typically trade in your old copier and replace it with a newer model. This is a great way to ensure you consistently refresh equipment to maintain the quickest and most advanced models available.
Re-leasing/Refinancing Equipment
Re-leasing your equipment means you keep the equipment for another lease term, typically two years. Many people choose this if their equipment still works great and there haven't been many service issues.
For this option, you would just need to inform your copier provider that you want to continue using your current equipment. Re-leasing has recently become an excellent option for many companies due to the copier supply chain disruption. New copier equipment has been very difficult to obtain.
Waiting for a new copier could take a substantial amount of time. Because of this factor, re-leasing is an excellent alternative if you cannot get new equipment by the time you need it.
It is essential to keep in mind, that there will be a point when the equipment becomes so outdated that releasing it could cost you more in the long run with service costs. If you have any concerns about your copier and its lifespan, ask your print service provider to guide you.
Step 3: Determine If You're Satisfied With Your Current Lease
The end of a lease agreement is an excellent time to evaluate whether or not you were happy with the experience you had with the company servicing you. If you were unhappy with the service and experience with the company you leased your equipment from, one option is to return all your gear and terminate any upcoming lease agreement.
If you decide to do this, begin looking into other managed print companies that you think would be a better fit for your company. You may even be reconsidering whether or not leasing your equipment is the right decision for your business, or if purchasing makes more sense.
If that is the case, check out this article to see which option better suits your needs: Leasing vs. Purchasing Copiers; Which is right for your business?
Plan For The End of Your Copier Lease
Planning ahead of your copier lease expiration has become more critical than ever. Supply chain issues after the pandemic often cause delays in getting necessary equipment in a timely manner, so it's essential to start considering your options sooner rather than later.
If you choose to swap your current copier for a newer model, you can place that order early to be ready by the time your lease ends. If you wait too long to place your order, there is a good chance you will spend considerable time waiting for the copier to arrive.
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