There are several things you should be aware of when leasing a home, and if this is your first time, it may appear not very clear. However, don’t go in blind. Learn about lease terms before meeting with copier leasing companies. Let us help you understand the terms of the copier lease agreement by breaking down each component.
There are two types of equipment lease agreements: fair market value and fixed purchase option lease.
Fair Market Value
A Fair Market Value lease, also known as an Operating Lease or FMV lease, is a lease agreement in which the customer has the option to purchase the machine at the end of the term for the fair market value at the time. This option provides customers with flexibility and allows them to deduct the monthly cost. There is an option, but not an obligation, to purchase the device at the end of the lease.
Fixed Purchase Option Lease
You may have heard this referred to by several different names (Term Lease, Dollar Buyout Lease, and Capital Leases), but they all mean the same thing. The fixed purchase option can be exercised at the end of the term, transferring ownership to the lessee.
Installment Purchase
An Installment Purchase is when you choose to pay cash for your machine but spread the payments out over some time, typically a few months.
Understanding lease terms is essential for obtaining a reasonable copier lease agreement. In addition, understanding copier lease agreement terms will better prepare you to compare copier lease rates and what copier leasing companies offer for your monthly fee. In this blog, we’ll go over some basic copier lease agreement terms you should be familiar with.
Lessor. Even though you will obtain a copier from a copier leasing company, such as Superior Office Systems, you will finance the lease through a bank or other lending institution. Just like when you lease a car, your dealer will select the lender, known as the lessor in contract terms, based on who offers the best interest rates and is most likely to approve your credit.
Lease Term. This is the time frame for which you agreed to use and pay for the copier. Leases can range from 24 to 60 months in length but are typically three to five years. Longer leases have lower monthly payments but are more expensive in the long run. If you anticipate high volume usage, a 5-year term may not be appropriate because your machine may not last that long. Your dealer should advise you on lease length based on volume, equipment type, and brand.
Payments. Your payments will be calculated by dividing the machine’s value by the number of payments scheduled over the lease’s term, plus interest.
Rebates. Copier manufacturers frequently offer promotions to make their copier lease agreement more appealing than competitors. Any rebate programs should be made known to you by your dealer.
Warranty. Your lease agreement will most likely state that no equipment warranty is included. Fortunately for you, this does not necessarily imply that a warranty does not cover your equipment. This is because the warranty is most likely included in your copier dealer’s service contract rather than the financial institution’s.
Interim Rent. Lenders follow billing cycles, which include specific payment due dates such as the first or fifteenth of the month. If your equipment arrives before the first billing cycle, you may be charged an interim rent payment to compensate for the time you had the copier before the contract’s start date.
Have Your Confidence in Copier Lease Agreements
If you are still unsure about which option is best for you, contact our experts at 1-410-483-7200 for assistance in making the right choice. We will provide you with a free evaluation and offer suggestions for ideas and solutions for your company.
We’ll guide you to the best business option for your organization based on our years of experience delivering the latest office support technologies to our customers. For dependable printer and copier repair in Baltimore and the surrounding areas, get in touch with us immediately!