Is your copier lease reaching the end of its term? Here are some things to consider before renewing an existing lease and keeping aged equipment. Be empowered and know what your end of term lease options are. Know what type of leases are available to you and what will work best with your business model. There are two traditional lease offerings described below:
An FMV lease is the most popular lease choice for companies looking to spend the least amount of cash for their office equipment over the course of the average lease. If you have a FMV lease or a true operating lease you have options at the end of the term that will allow for an upgrade to newer technology while satisfying current lease obligations or purchasing the existing unit at the "fair market value" at the end of the term. This type of lease can also offer tax incentives unlike other leases. Other buyers opt for a “dollar-purchase lease”, where they have the option to purchase the equipment for a dollar at the end of the lease. “$1 Out” leases work well for businesses that intend to keep their equipment longer, such as expensive high-end production units that are typically kept in use for longer contract periods.
Don't be fooled by gimmicks. Something for nothing? Free gifts (iPads, tablets, TV's) may actually add to your lease cost. Ask your sales rep if the cost of your free item is being added to the lease or truly a value-add at no cost to you.
What technology upgrades/changes do you have planned for your business that could impact current processes? Will your device be compatible with future technology plans? A great price could quickly double if it’s not compatible with your business applications. Features like scan to PDF and USB, network based printing, desktop faxing are evolving quickly and manufacturers are adapting and developing new tools and features to keep up with the fast pace by which technology is changing. Don’t get stuck with a device that can’t evolve with your business needs. New technology has features like cloud-based printing, hard-drive erase, Dropbox and Google Docs integration where older technology won’t be able to offer those functions.
Read the fine print. Before you sign any lease understand the terms by which you are bound to under the agreement. Does the renewal cover service and supplies? What is the term of the new contract? What options are you able to exercise if the device is no longer supported by the manufacturer or the vendor? Verbal commitments will not take the place of a lease agreement, so make sure to get it in writing if you were promised or “guaranteed” something (i.e. 2-hour on-site support, free paper, free network support, etc.).
At Spectrum Technologies, our goal is to provide end-to-end business technology solutions and be completely transparent during the entire buying process. Whether you lease or purchase, we have solutions experts that will work with you to review all the options and we will provide you with a comprehensive solution that will meet the needs of your organization. Contact us today to schedule a meeting with one of our knowledgeable representatives at (915)781-2000. You’ll be glad you did!
This blog was written by Rick Rosales, Account Executive with Spectrum Technologies.