When you’re looking at a new copier lease, you will get a quote from them about the three, four, and five-year rates. You want to ask copier reps three specific questions:
- Are there breakpoints in dollar amounts to where I’ll get a better lease rate?
- What are those breakpoints?
- Is your purchase price close enough to reach one of those breakpoints?
What Do These Breakpoints Look Like, and How Drastic Are the Rate Differences?
Let’s say you’re looking to buy a copier with an extra tray and installation for around $3,000.
If you were to buy this copier for $3,001 for a four-year lease, the monthly cost would be around $74. If you were to pay $2,999 for the same copier, the bank would now charge you $91 for the same four-year lease.
Let’s compare these numbers side by side:
You pay $2,999, and the copier will cost $91 per month for a four-year lease.
You pay $3,001, and the copier will cost $74 per month for a four-year lease.
Looking at the numbers at face value, they don’t make much sense. How does this math work in the real world?
Here’s How This Little-Known Leasing Secret Can Save You $815+ Over Your Four Year Contract
Copier leases (and leases in general) have what are called “stepping mechanisms.” If you spend a specific dollar amount, you get a better rate. These steps can give you dramatically better rates.
To understand how this stepping mechanism works for your specific purchase, ask if there is only one rate for any dollar amount or if the lease rate will vary based on the unit’s total cost.
If the total cost of the unit has a factor, ask where these steps are. You may be only $200 away from the next level, and you can get install services for $200 that push you over the edge to get a better monthly rate. For paying that extra money upfront, you’ll save money in the long run since that’s how leases work.
Whenever you’re about to get a new lease, ask about these breakpoints and figure out how they can affect your bottom line. Paying just the right price can save you hundreds and maybe thousands of dollars down the road.