If you have been leasing a copier for years, there is a point in time where you will need to start planning your next lease. This centers around the copier lease end date. Generally, copier contracts run from 3 to 5 years and are either a FMV copier lease, or they can also be $1 Out Copier Leases. There are different ways you will need to approach each lease to get the maximum benefit when you are getting your new copier.
How do you know the lease end date?
This is a date that will be on your contract, and you can generally work out the end date by looking at the lease execution date and then factoring in the number of months. Also, to be safe, you can always contact your leasing company…
In the example here, you can see who would need to be contacted to get the final lease dates and we will talk about a few other items too.
End of Lease – Under most lease agreements, the end of the copier lease requires more than just paying your payments. There is a notification that is required by the leasing company to formally end the contract. A good leasing company will end a $1 Out lease automatically, some others will not without the notifications required by the contract.
In the XFS contracts we use, the language looks like this.
If you see, there is a 30 days prior written notice required within the lease, then you will automatically be signing up for another 3 months. Let’s say you have a copier with a $500 a month payment, as you can see, this end of lease could get more painful. Especially if you made another deal on another copier.
Also notice, there is a requirement to pay to return the equipment. Most dealers will blend this in for their clients, so there isn’t any felt pain on this. However, if you switch companies, this cost will come up, and likely it will be your responsibility. It isn’t a big deal, you do want to know about it so it does not surprise you.
Early Lease Terminations:
One of the most common questions we get from new clients who contact us, tired of their current provider, is “how do I end my copier lease?”
This can end up being tricky because the leasing companies are essentially banks, they are not copier dealers. When they do the lease document, they are treating it as a loan, not as a copier finanacing deal that can be moved to another client. Think of a copier lease like a car lease, you can’t drive a leased car for 6 months, then take it back to the dealer, give them keys and be done with it. You may be able to make another deal where they can work some of the costs out of the current deal and work them into the new deal. Copier lease end dates work in a similar manner.
Copier Lease End Date Suggestions:
Here are a few suggestions if you are approaching your copier lease end date (termination date). We would suggest the following:
- Know when your lease ends and when you need to notify the leasing company by
- Be aware there will be a cost to ship the copier back and if you are working with a new copier dealer, make sure they know you have a copier that is leased that needs to be sent back
- If you have $1 out lease, work to make sure it automatically terminates upon maturity (we have seen some leasing companies charge customers a few hundred a month for an extra year because of that one clause, and over $1.)
- Keep a schedule of your lease dates if you have a copier fleet. Make sure to have all of the leases on one bill with their end dates, if possible.
If you are coming to the end of your copier lease, we would love to help you find another copier and the technology that makes the most sense for your business. Please reach out so we can help!!