Copier Lease Legal Aspects
Copier Lease – There is any number of different reasons that you may decide to get out of a copier lease. It is important to remember that a lease is a legally binding agreement. It is much easier to get into a lease than it is to get out of it.
There are several options for ending a lease early that may or may not come with consequences (i.e. credit rating hit, debt left behind). Weigh all of your possible solutions and think about what will be best for the future of your business before making a decision.
The standard industry solution to end a current lease is refinancing. This solution involves the balance that you owe on the current lease being added to the cost of the new lease. The balance, which is often referred to as “air,” will be spread out over the duration of the new lease term. For example, if you have $3,500 left on a current contract and the new machine is worth $5,000, the new contract will be worth $8,500 and will be carrying 33 percent “air.” Essentially you will be paying for two machines even though you are only using one machine. This option only makes sense if you are planning to get a replacement machine.
Will a buyout work for you?
If you’re happy with your current copier lease and with the service provided by the vendor, then you’re probably not even thinking about how to get out of your copier lease. But if you over-bought or under-bought or your needs have simply changed, you should explore a buyout. You may also want to consider a buyout if your monthly financial obligations are too high. It’s a good idea to look into a buyout if your business competitors with similar copier needs are paying far less for copier leasing and services.
A buyout makes the most sense if you’re deep into your contract and don’t have the lion’s share of your lease payments to consolidate into a new lease. Near the beginning of a lease, a buyout might not make economic sense.
We’ve talked before about what you need to know concerning getting out of a copier lease. It’s not easy, but it can be done! The best strategy for getting out of your copy lease is to do it within the terms of the lease. In most cases, that means sending an official lease termination letter before the lease “auto-escalates” a few weeks or even months before it expires.
We’re on your side, and we want to help you get out of your current copier lease agreement. All we need is a few pieces of information, and we will email you a personalized lease cancellation letter that you can use to break up with your current provider. Just click the link below to get started!
For information contact a copier dealer in your area to see if you can buy out the lease agreement, most times it will cost you more to buy out the lease than to let it run out, in most cases we see companies let ting the copier sit in a corner and not use it to eliminate the cost of the service contract and then returning the equipment at the end of the lease, I know sometimes is more cost effective than to actually pay off the lease.
So, in short, is very unlikely that you will be able to get out of a copier or any equipment lease.