October 19, 2012
I just want everyone to know this and it does not matter which company you choose to lease a copier from, when you are quoted a monthly lease payment, it does NOT include sales tax! The leasing company factors this in at your local States tax rate. Also, most of the time an application one time fee is charged. I am upfront with my customers or potential customers and let them know full well before they sign the lease.
so if you did not know this, here are a few tips when leasing you should know:
1) You will be taxed so when you see the monthly lease price/ quote, it does not include you local sales tax.
2) You will be paying a one time application fee to the leasing company.
3) At 60 days prior to lease end you MUST notify the leasing company and let them know what you are going to do. (keeping the machine, sending it back,) you must also mail them a letter of intent and keep good records of this and all phone calls, they are sneaky and will try to get you into additional months if not paying attention.
4) You are responsible of sending the machine back, most companies will absorb this expense providing you are buying from them sort of a gray area here but technically YOU are responsible for the lease return machine.
5) Most leasing companies will charge something called an “Interim Rent” this is the difference between the time the machine is installed and the first bill is sent to you, it only happen once but it does happen.
6) It is your responsibility to make sure the machine is working properly and nothing is broken at the time of return.
7) If you enter an all inclusive lease and the company (service provider goes out of business) its your loss,very few times in my 27 years have I seen a company getting recourse. Phil has said from the beginning, NEVER ENTER A 5 YEARS LEASE!, To me, this is just crazy. If you cant afford or do not want 3 year buyout then go with 3 years FMV lease.
8a) Once you have leased a copier, that machine must stay at the location that is on the lease agreement, if you move the machine to another address, you must notify the leasing company so they can make the change.
8b) Lets say you have leased a copier from a company and the machine had issues that could not be resolved and lets say the copier company that you are using removed that machine and gave you another, YOU are still responsible for the machine THEY removed! that machine with that serial number is due back to the leasing company, they DO NOT want any other machine but the one on the original “lease agreement”.
Types of leases:
A FMV lease is Fair Market Value, which means and the end of the lease the machine goes back or you may purchase it a fair market value, this is the cheapest way to go.
A dollar buy out lease is a lease (typically a little higher a month then a FMV) but when the lease is over, you buy the machine for $1.00, no catches it is Black & White.
Some companies have to get the latest and greatest machine every three years and money is not an issue, for this customer a FMV lease works out well, three years and out the door.
For the frugal customer, the one who closely watches expenses and is fiscally responsible, the $1.00 Buy out lease is very good, after three years you own the machine and if you were picked a good model machine, there is no reason why the machine can not last 7 years. Trust me it works out in your favor this way, just do the math.
I hope this has helped you and if you need anymore information please contact either Phil or Peter at PJD Business Machine at (516)785-3299 or visit us on the Web @ http://www.pjdbusinessmachines.com
we are long Islands Copier Service Company