I jumped in on another copier sales call recently and was absolutely shocked at the amount this law firm was paying for a few monochrome copiers. The firm was spending $1,200 monthly for two monochrome copiers when the standard price for the two should have closer to $600. I racked my brain trying to understand what else they were getting and thought: “If the typical consumer understood how lease rate factors functioned, they could save quite a bit of cash.”
Now, let’s say that you are receiving a payment quote of $250 monthly on a five year lease or $400 monthly on a three year lease. Which would you decide on? If you are unsure of how lease rate factors work when purchasing a copier, you may not be fully aware of what it is you are actually signing up for.
The typical factor for a five year “give it back” lease is approximately .02 and a three year is approximately .03. How does this impact your cost? Using the illustrations above of $250 or $400, the total being borrowed would be $250/.02 ($12,500) and $400/.03 ($13,333). In this instance, the firm providing the $400 for three years would be generating an additional $833 by financing it in this manner.
Knowing your lease rate factors are essential to keeping honesty in the process.
Call us to get a copy machine quote in Denver today!