Posts Tagged ‘Copier leasing’

Can you get me out of my lease?

December 26, 2014

I have often come across a customer asking me to get them out of a lease, this is a very difficult situation. Sneaky salesman will often try to “lock in” a customer into a 5 year lease, by doing this, they lock up that customer for five years and even if the company goes out of business, you are stuck with the lease payment. I have been doing this for 27 years, when you are in a lease and if your service provider goes out of business or if the machine fails miserably, you are still stuck with the lease.

Is there anyway to get out of the lease? Yes & No

The salesman can get you out of the lease by asking for a buyout from your leasing company, after the leasing company gives that amount, lets say $4500.00, the salesman will take that amount and add it into the cost of the new copier, he will then try and get you into another five year lease to reduce the monthly payment. You will pay dearly for this!

You have been reading my posts for a while now, you know what to expect, they’re  are so many customers still out there that get burned by the greedy salesman.

Never go into a five year lease, never!

If you are going to lease, it should be maximum of three years FMV (fair market value)

There is such thing as a dollar buy out lease, which means at the end of the three years, the machine can be bought for $1.00. I recommend this type lease only if you trust the selection of equipment selected by your current company. Remember, if it is a troublesome machine, you bought it. Only trust a technician who is a veteran in the business to make this selection. Salesman only sell, that is what they are good at and 95% of them only know the brochure and nothing regards to actual service history. Quite honest, most salesman are full of BS.

I would also only recommend a dollar buy out lease with a customer doing low to medium copy volume. If you do high volume, lets say 150k copies a year on a 30 cpm copier, then you should not do a dollar buyout. The reason is, in three years you will have at least 450k copies or better, that meter count is very close to what the copier life expectancy is. Remember, I am not a Snake oil salesman, I am telling you the facts coming from a veteran copier technician of 27 years.

Now, if your yearly volume is 60k, then yes! dollar buyout and keep the machine for 6 plus years!

My next blog will be about why it is important to take control of your lease and not leave it up the the salesman.

We are known for our honesty and fair pricing along with outstanding service. What more can you ask from a copier company?

visit us online @  http://www.longislandcopiersales.com  ask for Phil or Peter, we will give you advice like no other copier company can.

Thanks

Phil

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A Tip to know when leasing a copier

October 19, 2012

I just want everyone to know this and it does not matter which company you choose to lease a copier from, when you are quoted a monthly lease payment, it does NOT include sales tax! The leasing company factors this in at your local States tax rate. Also, most of the time an application one time fee is charged. I am upfront with my customers or potential customers and let them know full well before they sign the lease.

so if you did not know this, here are a few tips when leasing you should know:

1) You will be taxed so when you see the monthly lease price/ quote, it does not include you local sales tax.

2) You will be paying a one time application fee to the leasing company.

3) At 60 days prior to lease end you MUST notify the leasing company and let them know what you are going to do. (keeping the machine, sending it back,) you must also mail them a letter of intent and keep good records of this and all phone calls, they are sneaky and will try to get you into additional months if not paying attention.

4) You are responsible of sending the machine back, most companies will absorb this expense providing you are buying from them sort of a gray area here but technically YOU are responsible for the lease return machine.

5) Most leasing companies will charge something called an “Interim Rent” this is the difference between the time the machine is installed and the first bill is sent to you, it only happen once but it does happen.

6) It is your responsibility to make sure the machine is working properly and nothing is broken at the time of return.

7) If you enter an all inclusive lease and the company (service provider goes out of business) its your loss,very few times in my 27 years have I seen a company getting recourse. Phil has said from the  beginning, NEVER ENTER A 5 YEARS LEASE!, To me, this is just crazy. If you cant afford or do not want 3 year buyout then go with 3 years FMV lease.

 

Types of leases:

A FMV lease is Fair Market Value, which means and the end of the lease the machine goes back or you may purchase it a fair market value, this is the cheapest way to go.

A dollar buy out lease is a lease (typically a little higher a month then a FMV) but when the lease is over, you buy the machine for $1.00, no catches it is Black & White.

Some companies have to get the latest and greatest machine every three years and money is not an issue, for this customer a FMV lease works out well, three years and out the door.

For the frugal customer, the one who closely watches expenses and is fiscally responsible, the $1.00 Buy out lease is very good, after three years you own the machine and if you were picked a good model machine, there is no reason why the machine can not last 7 years. Trust me it works out in your favor this way, just do the math.

I hope this has helped you and if you need anymore information please contact either Phil or Peter at PJD Business Machine at (516)785-3299 or visit us on the Web @ http://www.pjdbusinessmachines.com

we are long Islands Copier Service Company

 

 

     

 


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