What happens when my Lease is ending?
In my day to day work one of the most frequently asked questions I get about copiers
“What happens to my copier at the end of the lease?”
What happens at the end of a copier lease depends on what type of lease it is.
Fair Market Value Lease.
What is a Fair Market Value Lease? In Fair Market Value Lease (FMV)is where the leasing company will decide what they believe to be the fair market value of your copier based on the original sale price. If you would like to keep the copier at the end of the contract you just pay the leasing company that amount of money they calculate to be the market value of the equipment and it’s yours.
If you don’t want to pay what the leasing company is asking, than it’s best to call your service provider and arrange for the return of the equipment and to cancel the service agreement.
Dollar Payout Lease.
This type of lease is simple. At the end of the lease you pay the leasing company one dollar and the copier is yours to keep. Thus the name dollar payout lease.
Please note that in a Dollar Payout Lease you will pay higher monthly installments, as the leasing company is financing 100% of the equipment.
Now you could decide to do nothing and the leasing contract and service agreement will go into what’s called inertia, where you continue to pay the lease and service agreement even though you have fulfilled your contractual agreements. In this instance, you are continuing to lease your equipment on a month to month basis.
In my personal opinion I believe it is best for you to strongly look at upgrading, as it will cost you same or even less… and you’ll have new machine.
I hope this information helps.