From time to time I will go on a sales lead and the customer will ask me if I can get them out of a lease. I would like to be clear on this, once you sign a lease, you are stuck in that lease for the entire time you signed in for. Will a salesman BS you and say “yea we can get you out” sure they will but you can only get out one way, and that is if you buy out your lease. The salesman will call your leasing company and asked them for the buy out price,which will include the additional cost if the leasing company charges if you end a lease early. They take that amount and they tack that onto the price of your NEW copier. Yes it is a very hefty dollar amount but someone has to pay for it (YOU). I what the salesman will try to convince you on doing is locking you back into a 60 month lease! They salesman and leasing company will make more money by booking you into a longer lease, yes your monthly payments will be smaller but you will end up paying more.
What did you think? the smiling salesman was going to absorb this hit? He nor his/her company or the leasing company will ever do this, you are on your own!
Now, I have been writing and preaching for more than 10 years now, why you should never go into a five year lease, over and over and over again. When you have a high volume office and you are doing 150k – 200k or better a year… you should lease a machine for THREE YEARS FMV ! after the three years, your machine will be at around 600k, this is when things break down and major pms are needed, why go forward with the same machine? after all you are leasing and you will continue to lease, mine as well lease something fresh every three years!
Customers with moderate volume or low volume, I recommend they lease with a $1.00 buy out so you can enjoy lease free months after three years, after all, isn’t that everyone’s goal? to keep monthly payments to a minimum?
The salesman wants to sell and will do anything to sell that machine to you. You can not get out of a lease without YOU paying dearly. Not even the biggest law firms can get out of a lease, trust me, I have been doing this well over 20 years.
To recap this blog:
1) You can not get out of a lease
2) Never lease a machine for more than 3 years (reasons obvious)
3) Take anything a copier salesman says with a grain of salt.