I went on another copier sales call today at a law firm and the numbers I saw this firm paying for a couple of black and white copiers was staggering! This law firm was paying $1,200 per month for 2 black and white copiers when the normal rate on the two copiers they had would have been closer to $600. I scratched my head trying to figure out what else they were getting and I thought for the average buyer, knowing how lease rate factors work could save them a ton.
Let’s say that you are getting a payment quote of $250 per month on a five year lease or $400 per month on a 3 year lease, which should you choose? It gets tough to know what you are financially signing up for if you are unsure of how a lease rate factor works on a copier.
The standard factor for a 5 year give it back lease is about .02 and a 3 year is about .03. How does this affect your payment or cost? Using the examples above of $250 or $400 – The amount being financed would be $250/.02 ($12,500) and $400/.03 ($13,333) – So in this example, the company offering the $400 for 3 years would be making an extra $833 by financing it this way. Knowing your lease rate factors are critical to keep everything honest.