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3 Copier Lease Agreement Terms You Have To Know

3 Copier Lease Agreement Terms

A lot of businesses enter into a copier lease in order to avoid shelling out thousands of dollars upfront to buy a high-end multifunction copier. By signing a copier lease agreement, you will pay a monthly or quarterly fee for your copier over the life of a lease, which is commonly three to five years in duration. 

When you get proposals from copier leasing companies, it is crucial that you know your copier needs. You can start with a needs assessment in your office, so you won’t fall for any high-pressure pitch from leasing companies that sticks you with more copier that you need and an expensive monthly lease bill. You can also avoid copier lease overkill by accurately assessing how many copiers you make monthly. If you make 20,000 copies a month, do not lease a machine that is capable of making 200,000 copies a month. Do not pay for volume you do not need. The same goes for other features, you need to talk to your co-workers to know what copier features they need. 

Understanding lease terms is critical to getting a fair copier lease agreement. By knowing the copier lease agreement terms, you will be prepared to compare the copier lease rates and what the copier leasing companies are giving you for your monthly bill. Here are three copier leasing terms that you need to know.

Fair market value

It is not uncommon to sign a lease agreement for your copier that gives you the option to buy the machine at the end of the lease. Companies usually opt to purchase a copier at the end of a shorter-term lease because the copier is more likely to have some longevity and not reach a stage of unreliability. The purchase price, which is then determined by the bank, ranges from 25 to 30% of the original cost of the machine. 

Interim rent

The lenders adhere to billing cycles. Billing cycles contain specific payment due dates like the 1st or the 15th of the month. If your equipment arrives before the first billing cycle, you may be charged an interim rent payment in order to cover the time that you had the copier before the set start date of the contract. 

$1 Buyout option

Sometimes lenders allow you to buy the copier for $1 at the end of the lease. The buyout may sound like a good option in your copier lease agreement, but it could be costing you more money on your monthly lease payments. It may be better to agree to smaller payments and decide at the end of the lease whether you want to buy the copier. Deciding at the end of the lease will give you the benefit of knowing the full condition of your copier and whether your copying needs have changed. 

Be careful with calculations and shipping. A lot of lease companies will give you a chance to add copiers to a lease and recalculate the copier lease based on the additional equipment. Carefully look at the numbers for hidden rate increases and to make sure that you are not paying more than the value of the copier. 

Also, make sure that you examine, copier lease Chicago agreement for shipping terms. It is not unusual for the lessee to be responsible for picking up the shipping tab, which costs hundreds, at the end of a lease. 

If you wish to get a copier for your office, you can opt for a copier lease. Copier leasing in Chicago gives you the chance to choose the best copier that will suit your needs. As long as you understand the terms of the lease and you get the perfect vendor who is willing to work with you, you do not have to worry. You can contact your local copier leasing services for details.