Copier Leasing is how most business get their copiers today, and by most I mean more than 90%.
When a business chose to lease a new copier they enter into a three way agreement between the customer/end user, the dealer and service provider who sold you the copier and lastly the leasing company who finances you the copier.
Copier Leasing Guide
When you lease copiers or printers you will get a bill from the leasing company for lease payment, lease terms range from 24 to 60 (24,36,39,42,48,60 and 63) months with 39 and 60 being the most popular durations.
At the end of the lease you will need be given a choose to return the copier to the leasing company or to buy it out and keep it the leasing company will typically give you a quote for it’s fair market value assuming you took a FMV lease. You dealer will usually try to contact you between 6 and 18 my the before your lease expires and offer you to roll your remaking payments into a new lease and give you a new copier and new service contract.
Copier Leasing Resources
Copier Leasing Checklist
Choose a copier dealer
Choose a brand of copiers
Lease Types
There are two main types of lease contracts
FMV or Fair Market Value
$1 Dollar Buyout
Although these are the main options there are some other less commons options we will discuss later on.
With a FMV lease you’ll have the option when lease has ended to return the lease or buyout the lease from the leasing company for its fair market value.
The FMV is typically about 30% of the initial purchase price for shorter terms like 36 and 39 months and around 15% for longer terms like 60 and 63 months.
The $1 Buyout option is essentially a full financing option since you only pay $1.00 and keep the copier. The only tome you may want to return the copier to leasing company on a $1 Buyout is if you live in a place where shipping it back would cost less then it’s disposal.
Who are the Leasing Companies
Most leasing companies are either banks or commercial lenders that have equipment leasing programs. However some larger dealers will offer their own in house leasing and financing but is less common and also may be less competitive when it comes to document fees and insurance.
Some of the most popular players in the field are
CIT
US Bank
Great America
Leaf Financial
Wells Fargo
we will be publishing our complete review of all the most common leasing companies in the near future.
