It may start with a little issue like a small billing error. Or maybe your machine has started giving you some minor problems. Then you can't seem to get a timely service call, and your device is down for three days. All of the little issues pile up, and soon you're just frustrated and done dealing with a provider who hasn't lived up to their end of the deal. It maybe isn't even the service. Perhaps you've just outgrown the functionality of your current MFP or copier.
Either way, you realize one thing. You still have 18 months left on a 60-month lease, and you aren't sure what options you have to make a change. You've heard of the term "copier lease buyout," but you don't even know what that means. All you know is you need to make a change, and you can't afford a massive new bill. Well, we're here to help answer your questions about copier lease buyouts and how they work.
What is a Copier Lease?
A copier lease is a lot like a car lease. It's a contract with a lender that holds ownership of the device. Over the agreed-upon period, you agree to pay a monthly fee to use the copier. At the lease end, you can either A) trade the device in for a new model or B) have the option to purchase the device. The lease is a legal contract where you agree to make a monthly payment in exchange for the use of the device for the contract term. You cannot just get rid of our machine and not have to make the monthly payments. Stopping payment on your copier lease will result in the copier's repossession and a big hit to your company's credit.
So what can you do if your current copier isn't cutting the mustard? Or worse, the service level of your current provider doesn't measure up to what they promised? What can you do to rectify the situation? A copier lease buyout may be the answer.
What is a Copier Lease Buyout, and How Does It Work?
So you know your lease is a binding agreement, and you can't just stop paying it. You also understand that you need to find a better device or better service. Getting out of a service agreement is pretty straightforward, but the copier lease is a different story. This is where the buyout comes into play. It is common for copier dealers to buyout a copier lease to earn your business. The less time you have left on your current lease, the better your chances of getting a dealer to buy out your lease.
When a dealer agrees to buyout your lease, it means they're willing to take your remaining payments and roll them into a lease on a new contract. This new contract allows you to upgrade your technology to a more efficient and secure model that provides your business with what is needed to be productive NOW instead of waiting for your current lease to end. And while it isn't technically an actual buyout, it will allow you to make the switch you want before your lease expires affordably.
Generally speaking, copier dealers are willing to buy out a lease with 23 months or less remaining on the term.
So Why Do a Copier Lease Buyout?
In many cases, a copier lease buyout is the only feasible option for a business that is unhappy with its current copier lease agreement or their equipment. Because a copier lease is a legally binding contract, you can't cancel it or end it early. The buyout can be a great alternative if your current copier lease isn't meeting your company needs. The company gets out of the lease that no longer is in its best interest without any legal hassles, and your company will get the newer equipment you desire with better terms.
If you're in a current copier lease that isn't serving your company's needs, reach out to Fraser. We will review your situation and provide you with honest, upfront answers to how we can help you get to where you want to be.