With 35 years in the copier industry, I like to think I know a little bit about leasing copiers. I’m going to share this wealth of knowledge with you today. I will also explain why people would lease a business copier, the benefits of leasing vs buying, and how to avoid the pitfalls many customers run into while leasing.
Leasing vs Buying Copiers
Leasing copiers is the most common way to acquire a commercial machine because people typically do not want to lay out a lot of money at once. This is similar to why more people lease cars instead of buying them. Business owners have better uses for their money than to lay out upwards of $6,000 at once. Leasing can be a more convenient solution for a customer.
Another reason why leasing is preferred over buying is due to the value included in the monthly payment. You see, when a machine is leased we include the cost of service and supplies into the lease payment. Instead of paying for the machine and supplies individually, one payment includes supplies and service for whatever volume you typically output in a month.
How to Avoid the Pitfalls of Leasing Copiers
Leasing is a great tool if you use it properly. Unfortunately, some don’t use it properly. People can get into trouble when it comes to fees and contract renewals. There are fees for things like paying bills late, and you may find a line item on your bill if you don’t provide proof of insurance from your insurance agent. In order to avoid these fees, the best thing to do is to set up automatic payments, as well as provide proof of insurance at the time you sign the lease.
Customers who fail to provide proof of insurance will end up getting charged extra for insurance from the leasing company. When a piece of equipment like a commercial copier is on lease the customer is required to have it insured. Unless you provide proof, it will be assumed you don’t have insurance. The leasing company will then charge you for their insurance, which is usually more expensive than if you were to get it from your insurance company.
Lastly, the main thing people get in trouble with is lease renewal. There is always a renewal clause right in the contract, which says if you do not notify the leasing company of your intentions at the end of the lease period then your contract can go into renewal. Renewal is anywhere from one month to one year. Adding insult to injury, when a lease contract goes into renewal you’ll have to pay out of pocket for service. That’s because service contracts run concurrent with the lease, so when the lease runs out your service contract runs out. The service contract does not go into renewal, which means you’ll have to pay for your own service.
Leasing Copiers: In Summary
I’m not telling you all of this to scare you away from leasing copiers. On the contrary, as a dealer, I want to give you every advantage as an informed customer. Leasing is a great tool, but you have to be smart about it. Leasing offers very competitive rates, and it doesn’t cost much more in the long term to lease versus buy. However, there are ways that leasing companies make money from fees, renewals, and insurance.
At Dean Office Solutions we make sure every customer is aware of the fine print. We’ll even remind you 6 months ahead of the end of the lease that you need to inform the company of your intentions. If you wish to return the machine, we can even write a letter to the leasing company so you can avoid going into renewal. We take care of everything from start to finish. Please contact me today to get started.