If you have a copier lease currently and are getting closer to the end of the copier contract, it is likely your leasing company has been trying to get hold of you regarding a possible copier upgrade. It can be a confusing process if you aren’t dealing with returning office equipment regularly.
We have helped companies with their copier lease returns for years. Part of being a copier dealer is understanding and helping clients with lease returns of their equipment.
In this article, we will talk about copier lease returns and some things you should and should not do as you are getting a new copier.
Tip #1 – Know Your Copier Lease Buyout
If you are doing a full market value (FMV) copier lease, one of the key aspects of the cost of the new copier is what is the existing copier buyout. A buyout is industry lingo of what you have to pay if you want to return the copier before the end of the current lease term. Let’s say you have six months remaining at $300 per month on your current lease. It is possible the buyout of that copier could be $3000 rather than the expected $1800.
Knowing what this number is helps you know what sort of premium you are being charged to upgrade early. If you are super happy with your copier, it might not make sense for an early upgrade.
It is possible the manufacturer is providing a price incentive to upgrade sooner than the end of the current term. When this happens, they are basically funding the upgrade in a similar fashion as your cell provider does when you are getting a new phone.
If you just assume it is a free upgrade, this is not typically true. There is a cost to buy out the current copier lease, so you will want to know what that cost is.
How Do I Discover the Buyout?
The best way to determine your buyout amount is to look at your copier lease bill and then call the number on your lease and ask. This will generally trigger a call from your current copier company, as they will wonder if you are looking to upgrade, or if a company like ours is trying to get your business over a current provider. The lease company normally shares the fact you called with the current copier dealer.
Where Will the Copier Go?
Another important thing to know is where will the existing copier go? If it goes back to New Jersey, and you are in Nashville, how is it going to get there? It is normally your responsibility to get the copier back to where the copier lease says it needs to go. This will be a cost you pay. When you upgrade, the copier company will normally put that cost into the price of the new unit, because they know you need it sent back to end the current copier lease.
Copier leasing does have some factors like where does the copier go which can feel complicated, but a solid copier company can help you navigate these waters.
Copier Lease Buyout on $1 Out Lease
If you happened to get a $1 Out copier lease, the buyout is just $1 at the end of the lease. This is good to know because at the end of the lease you will pay $1 and own the copier. You can get copier service as you see fit on the copier and have no requirement to send the copier back to the copier dealer.
If you plan to keep the copier until it dies, you should get a $1 Out lease agreement.
How Long Before Lease End Should You Wait?
You will have the option to do a copier lease buyout and a new agreement before the end of the current lease. We would normally suggest doing it with about 90 days remaining, as this gives you the time you need to have the new copier shipped in and be installed, and gives you the time to organize the return of the old copier. With three months left, the buyout should be small and not really have an effect on the new copier pricing.
If your copier company is talking about an upgrade a year or two before the time, you will want to find out why they are looking to upgrade it so far in advance.
If you want it upgraded (maybe the current copier always breaks,) just be aware you will be paying a bit of a premium if that is what you decide.
Printer leasing can seem confusing and we are here to help you deal with upgrading your copier at the end of the copier lease. Please give us a call to chat and discuss your options regarding the end of a copier lease or a copier lease return. We would love to help.