What “End of Lease” Means for You

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From that new-car smell to the Styrofoam peanuts that spill out of a shipping box, there’s nothing like the experience of finally acquiring much-needed “stuff” to get us excited and engaged. The same goes for purchasing or leasing new office equipment.

And just because you’re leasing your document copiers and printers, not buying them, you can still experience pride of ownership and feel protected when your lease is up.

Your end-of-lease satisfaction depends on the steps you take before the lease is ever signed.

Two pre-lease considerations:

Fit: Beyond the physical dimensions of the equipment (will it fit properly in the designated workspace, or will it need additional room?), you and your equipment provider must both understand the needs of the users. Will your staff be able to understand and use the equipment easily? Will they need additional training when the technology is updated?

Fixed and variable cost: Some people lease a car instead of buying, believing they will save money when in fact their ties to the “lease cycle” actually ensures they’ll keep paying, even incurring extra cost for exceeding the mileage agreement or sustaining vehicle damage.

Office equipment holds similar risk. Sometimes those “low” lease terms include unforeseen incidentals and costs at the end of the lease:

  • The removal fee is the cost to deliver the system to the destination of your choice.
  • Auto renewal is a “fine print” option that you cannot afford to overlook. Ask your provider about when the renewal kicks in and what is the procedure you must to follow to avoid having your lease automatically renewed.
  • Packing fee/shipping/ fee insurance for transportation is often an add-on cost to a lease agreement.
  • A system overhaul fee is a new “hidden” fee that may be added to your agreement to restore your document equipment to a previous benchmark performance level.

Three end-of-lease considerations:
Before you know it, that new equipment will be at the end of its lease. The decisions you make for end-of-lease include options you may negotiate with your document management provider:

  • Buy outright: If a printer, copier or other piece of equipment proves to be an ideal long-term solution for your office, buying it outright at lease end can save you money. However, you will want to discuss the terms of warranted repair and service after the lease has ended.
  • Renew/extend the lease: As with buying, a lease renewal can keep a proven system at work in your organization; the cost will now depend on the condition of the equipment and the length of its further use. Watch your agreement for the system overhaul fee.
  • Trade up: As technology evolves, you may agree that a newer version of your document machinery is in order. Absent of “auto renewal” or other hidden traps, you should be able to negotiate mutually acceptable terms for the new equipment.

Don’t wait for the last day
An ideal office equipment representative keeps your satisfaction in mind — but that doesn’t relieve you of the responsibility for reading the fine print! Knowing ahead of time what your lease-end options are will make the transition that much easier.

Click here for your free whitepaper on how the next generation of dynamic documents will improve the way we work

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AUTHOR

Hughes Xerographic

All stories by: Hughes Xerographic

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