Tip #9 — Understanding What a Lease is, and is not…
As I work with companies here in Denver on Leases, it is interesting to me to see how many people have a fundamental misunderstanding of what a lease really is on a copier and what it is not. Most people seem to see a lease as a simple way to have 1 payment per month and not have to seperate all the costs associated with a copier. The odd thing is, this is a result of a lease, but it is not the intent.
A lease is designed mainly to help you finance a big ticket item. It is also a way to pay slightly less for a big ticket item compared to financing when you are sure you won’t want it at the end of the term. Many people would keep their copiers a few more years if they could, but when they hit the end of the lease term, they have to renew with a new copier.
A lease is good when you have accounting reasons to lease (so it’s a capital expense)… but it is not “cheaper” than simply buying the device. Purchasing would give more options, options like do you want to pay for maintenance. On a large copier, it makes sense to, but it would be open for competition rather than being locked in with the company that sold the device. These kind of options can make your purchases cheaper.
Let’s be honest though. A copier is a purchase made out of necessity, not passion. You have to have a copier so researching and re-bidding is not something you want to do. If you are buying the copier, you could still get a all-inclusive rate and then at the end of the term… re-negotiate for an extension on the term or buy another device. It’d become your choice. Buying a copier or leasing is very similar to buying a car or leasing a car. Leasing requires you to use the vendor’s maintenance (because it is their copier, they want it taken care of and decide who repairs it…), requires you to return the copier… but does make a “one payment system” a bit more natural. Just be aware this same option could be available if you bought the copier.
A lease should be pursued for accounting reasons only. Any other reasons could be accomodated with a sales rep who understands you are interested in simplicity and options as you are purchasing the copier. If you need to find such a rep here in Denver or the Front Range, please contact me through this page or by the phone number listed.