If you are leasing a copier, one of the questions that could come up is how to tell if your lease rate is good.
We have been leasing copiers and helping people get copier leasing for a decade. One of the parts of this is helping them to secure the needed financing for the copier (leasing.)
In this article, we will go over how the leases come together and how to compare copier lease rates between companies.
What is a Copier Lease Rate?
A copier lease is a financial agreement where a bank offers money to pay for the copier in exchange for lease payments over a specified period of time.
With this agreement, people who sell copiers need a simple calculation to be able to come up with payment amounts. Rather than trying to teach sales reps complicated math equations, what the bankers did was create a table where the lease payment equals the amount financed times the lease rate factor.
For example, if a 60M FMV lease has a lease rate factor of .0191 – what this would mean is a $10,000 would be $191 per month. ($10,000 * .0191 = $191)
How Can You Compare?
In order to compare lease rates there would need to be a few things answered. Here are a few ways to compare lease rates.
- You can just ask what the lease rate factor is
- You can compare the total costs of the same models with the same accessories (assuming they are sold for the same price, which they probably are not.)
- You can ask what the financing amount (cash price is) and then look at what the lease payment is. If you know the financing amount, and the payment, you can work backwards to the lease rate factor. Lease payment/Financing amount = Lease Rate Factor – in the example above $191/$10,000 = .0191 which is the lease rate factor.
If you want to get a copier lease, we would love to help. We are happy to provide any of these details as part of our sales process. Whatever you need to know to make the best decision for your company we want to provide to help you with your copier lease.
If you want to learn more about what a copier lease rate factor is, give us a call so we can go over this in more detail with you!
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