While leasing office equipment can most definitely be the most advantageous option for a business based on the current financial situation, it’s important to be fully aware of what that entails as the end of the lease approaches. Knowing how and when to terminate a copier lease agreement is the key to avoiding long term issues. If you’re just starting the purchase process, read about the pros and cons of buying and leasing here.
If you opt to lease your equipment, pay particular attention to the requirements of the termination clause. While lease termination language varies, copier lease agreements typically require notification be given to the lessor anywhere from 30 to 150 days PRIOR to the end of the lease term to confirm a buyout or a return of the equipment. If you miss this window, the lease could automatically renew for one year. This may continue until formal notification is made to terminate the lease.
For businesses who are satisfied with their equipment, payment amount, and service, this may not be an issue. If that is the case, they may elect to continue with the terms of the lease as they exist. But for those companies whose equipment no longer serves their needs, is not functioning efficiently, or is costing a substantial amount of money in overage charges, this can pose a serious problem.
Three (3) tips to terminate your copier lease agreement:
Upon signing your lease agreement, immediately calendar the maximum number of days out from your termination date. This will ensure you don’t miss the window and allow time to research your options and make an informed decision.
Once you are within the window of the required lease termination notification, contact your current service provider and a minimum of two (2) additional dealers to explore your options. Much like a vehicle lease, many dealers will have an early lease termination option. This would allow you to upgrade your equipment prior to the lease termination date. You may also want to consider a flat rate option to eliminate future overage charges and annual service fee increases.
Don’t be afraid to reach out to your service provider if your copier lease is no longer meeting your needs. They can provide additional termination options such as a balance payoff or refinancing of the remaining payments.
Ford Office Technologies’ experienced sales team is available to provide you with comprehensive lease termination options and answer any questions you may have. Call 800.633.3673 for more information.
