Copier leases can be a little frustrating sometimes. You signed for a 60-month term to get the lowest monthly price. But let’s face it: technology is rapidly changing and what you signed for 3 years ago isn’t quite fulfilling your needs today.
So how do you exit your current copier lease so you can upgrade to the latest model without paying early termination fees or the full balance of payments? This guide will teach you how.
#1 – Calculate Your Approximate “Balance of Payments”
“Balance of Payments” is a leasing term used to describe the value of payments remaining in your copier lease contract. To calculate this, you will need to dig out your original lease contract to see the A) Lease Start Date B) Contract Term and C) Payment Amount (before taxes). Based on your lease start date and contract term, you can figure out how many months you have left owed on the contract. Multiply this number by the payment amount to calculate your “Balance of Payments.” To be safe, you may want to build an additional $500 into this number to take into consideration any missed payments or re-stocking fees that the leasing company subjects you to.
#2 – Request a Copier Quote with the Balance of Payments Included
Contact your favourite local copier company (we hope it’s Ontario Copier!) and request a quote on a new copier. When discussing your requirements and so on, make sure you ask your copier rep to include your Balance of Payments as part of the quote. Most copier reps will request a copy of your lease agreement to calculate this number themselves, but this saves them the time and effort while ensuring you have full visibility of the process.
Now you might be thinking, “Won’t this increase my new payment amount?” Yes… and no! It’s very common practice that copier companies will heavily discount new equipment pricing in order to even out the increase from your balance of payments. Often times your new monthly lease payment is lower, even with your balance of payments included.
#3 – Calcuate Your Savings Based On Your “Total Cost of Ownership”
Your monthly savings from one copier to the next don’t always happen on the leasing side. New technology means better reliability and lower service costs that can be passed along to the customer. “Total Cost of Ownership” is an industry term that refers to a customer’s total spend, calculated by your Lease Payment + (Service Rates x Average Monthly Print Volume). Depending on what your average monthly printing volume is, your “Cost Per Print” service savings on a new copier can often be much more significant than your lease payment savings. Often times you can justify a faster, higher quality copier with a higher monthly lease price if it means significantly lower service rates that covers all of your toner, parts and labour.
#4 – Negotiate the Finer Details
Now comes the fun part. Copier companies often receive bonuses from leasing companies, so the more money they are leasing, the better. Copier reps love including balance of payments in a new lease because it takes them to those bonuses quicker! This gives you, the customer, a little more negotiation room to get a fair bargain.
Firstly, make sure the new copier company is providing in writing that they will return your existing copier to the leasing company at no additional charge. It’s common practice for copier companies to charge $300 or more to return your equipment at the end of a lease. At Ontario Copier, we are happy to return any equipment you have at no additional charge if you make the decision to buy from us!
Secondly, ask for some free prints with your new service contract. This way, you get to start using your new copier without incurring any costs for testing out your new office tech. And by the way, you don’t even need to ask us for free prints. For a limited time, Ontario Copier is offering 1000 FREE black prints and 1000 FREE colour prints on any NEW colour copier leased between today and December 31, 2017.
Getting out of a copier contract is easy. You just need to calculate how much you owe on your current lease contract and then negotiate with a reputable copier company who has your best interest at heart.
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