How To Get The Best Copier Lease For Your Business
Courtney Carlson of IOT (located in Eagan, MN) talks about how to get the best copier lease for your business. Understanding the types of leases, and what you can include for free services will potentially save you up to $800 or more on your next copier lease! Courtney will review Fair Market Value copier lease against a Dollar Buyout copier lease, to help you choose what makes the most sense.
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YOU’LL LEARN
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There are two main types of copier lease – Fair Market Value Lease (FMV) and Dollar Buyout Lease
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On the FMV lease, you do not get to keep the copier at the end of the lease, but you can purchase it
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With a Dollar Buyout Lease you have the option to purchase the copier for one dollar
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You must choose the type of lease you want before you sign the copier lease
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Once the copier lease is signed and setup you cannot change it
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Try to get a copier lease that includes delivery and installation of your copier
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Consider what to do with your old copier and try to get it taken away at the time of delivery
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If delivery and installation is not included in your copier lease, you will be paying about $500
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It can cost up to $200-$300 to dispose of your old copier, if it’s not included in the lease
Jesse: Hey, everyone. Jesse Dolan here with Courtney Carlson.
Courtney: Good morning.
Jesse: Going to do a little IOT TechTalk here today, and we’re going to be talking about the best copier lease for small businesses. Courtney is our resident copier expert here, knows copiers inside and out, so Courtney’s going to give us kind of his nickel tour on copier leases, types, and his best recommendations here for everybody.
So, Court, if I’m a small business looking to get a copier into my office here, just kind of walk us through the options, and what you think is the best fit for a copier for a small business.
Courtney: Sure. Well, you have two options of leasing. You have what’s called a fair market value lease, and you have, also, what’s called $1 buyout lease. Main difference between the two leases, fair market value, you make payments. If it’s a 36-month term, at the end of that lease term, that copier goes back to the leasing company. So, as a business owner or company, you don’t own that copier, but-
Jesse: So, you could buy it from the leasing company for fair market value.
Courtney: You could buy it at fair market value, and in most cases what we see, I don’t necessarily recommend people doing that just because you’ve more than paid for that copier in that lease term. It doesn’t make sense always for what that purchase price is, so the other option that you have and which I recommend is $1 buyout lease. So, at the end of that lease term if it’s 36 months, you have the option to purchase that equipment for $1. Then, you as a business owner or company, you own that asset at the end of that lease term.
Jesse: No hidden. It’s just $1.
Courtney: No hidden fees. Just $1. It’s $1 buyout or, as some people call it, a buck out. It’s a very simple agreement, and I recommend that mainly because you’ve taken advantage of the financing to make that purchase with a 36-month term. You’ve made your payments on the machine. You can purchase that for $1, and then you own that asset. You can keep using it if it meets your needs for however long. You can donate. You can sell it.
Jesse: Whatever you want. Yeah.
Courtney: It’s your asset. You own it, so you have something to show for at the end of that lease term that…
Jesse: Now, do you have to decide this on the front side, right? Before you enter into the lease agreement, this isn’t something to decide like, “Oh, I got a couple months left on my 36-month term. Should I do fair market value or $1 buyout?” That has to be decided when you do the lease on the front side, right?
Courtney: It is. It’s all set up on the front side in the initial review with the customer and in finding out what their needs are and what direction. Because once it’s set up, it’s set for the lease term.
Jesse: Okay. Interesting. Any other tips or advice you want to give people, too, on how to set up their best copier lease?
Courtney: I’d just look at all the terms of the agreement, and in a lot of cases, if you can get delivery and installation included, that’s something you don’t have to worry about. We typically will come in with the copier and do a complete installation, take care of network installation, making sure everyone can print and scan. Any training that’s involved, we would take care of that at the time of delivery.
Also, too, I recommend customers think about what to do with their old copier. Most times, you’re going to have an old machine that needs to be brought somewhere, so we’ll typically do recycling disposal of that old copier, so those are two important things to look at when doing a lease. Making sure that you have somebody that can install it, and then, also, removal of your old machine.
Jesse: So, if you weren’t maybe aware of that on the front side, is there any range high and low end of what people could expect for delivery and set up of a copier if it wasn’t included for free?
Courtney: Yeah. Typically, most installations, they take two to three hours to do a network installation, and it varies by the company size, the number of users and computers. But a typical charge is usually around $500 for an installation.
Jesse: So, it’s quite a bit.
Courtney: That’s something you can make sure and have that covered and included. It’ll definitely save you some money down the road. Then, as far as recycling disposal, probably cost on that is somewhere between two and $300 to have someone come out. Most recycling companies charge a trip charge. They also charge a per pound weight fee, so that can add up.
Jesse: Yeah. Well-
Courtney: So, two that can definitely save you some money by looking into that and just making sure that you have that covered.
Jesse: Well, right there, you’re talking, I mean, rough numbers on the front end and the back end, that’s potentially upwards of $800. Just being aware of that could save somebody a good chunk of change right there, so-
Courtney: Exactly.
Jesse: Awesome. All right. Well, hopefully, that helps everybody else out there for getting the best copier lease for your small business. If they have any more questions, Court, how can they get ahold of you?
Courtney: Yes. You can call me at (651) 452-5630 or email address is courtneycarlson@iotsolutions.com.
Jesse: All right. Thanks.
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