When it comes to leasing, we have tracked our sales and found an interesting trend. About 92 percent of the leased equipment involves the use of a third-party provider. Of the 92 percent, we have witnessed 89 percent of the leases being written for 60-month terms. 60 months equates to five years, which is a long time for a lease, and technology changes so quickly nowadays, why would someone choose a 60-month lease over a 24 or 36-month lease?
Short-term leases come with the benefit of faster upgrades, and after just two years of owning a copier, the technology can change so much. If you sign a 60 month lease, you will encounter expensive items breaking down, and your reliable repair technician could be replaced with someone else. Short-term leases reduce these risks.
However, a key reason customers sign 60-month leases is because it gives them the use of a copier at a lower price. When the lease ends, they have to ship their current copier back to the leasing company; not to mention, they have to send a notice of cancellation 90 to 180 days in advance, which all becomes a huge hassle. Businesses do not have the time to worry about these things, which is why they often choose the 60-month lease because it means they have to do it less often.