Depending on your experience with your current copier and leasing company two distinct feelings will come along with your lease expiry. People who have had poor experiences will be excited to find a new leasing company and move on. Those who have had great experiences, however, may have a harder time deciding what to do.
Should you renew your lease, upgrade your equipment, or buy out the device and go without a lease? There are pros and cons to each option, and there is not necessarily a right or wrong answer that can be applied to every organization.
Renew Your Lease and Go With the Status Quo
Chances are if your lease renewal is approaching, a leasing representative has already reached out to begin discussing the options available to you. If you have been happy with your leasing company’s service and the quality of the product provided, then it may seem obvious to renew.
There are a number of pros to renewing a lease with your existing lease provider. First, this is the simplest option for yourself and your staff. There is no need to remove the old equipment, bring in new equipment, and then familiarize yourself with your said new equipment. Why mess with something that’s not broken, right?
Some people can be frustrated with office technology so if you have an office that works well with the equipment you have, then sticking with what you know works well for you might not be such a bad idea. If your lease provider has provided exceptional repair services in the past, then that may give you another reason to stick it out for another term.
Of course, there are cons to renewing your lease and sticking with the same equipment.
Even though you may be happy with your leasing provider and equipment, renewing a lease can be a big decision, after all, no one has a crystal ball.
Will your equipment continue to work as flawlessly over the next few years? Will the technology become outdated and cumbersome by the end of the new lease? All of these are questions to consider and ask your leasing representative about.
Upgrade to Shiny New Office Equipment
A copier lease is not often the most exciting part of doing business but getting new equipment has the power to get people excited.
The most apparent advantage of upgrading your equipment is enjoying all of the newest features and technology. When lease renewal time comes around you, get the chance to pick the new products that will help your business the most.
This is especially appealing to those who had poor experiences with their existing copier or find that it requires more repairs and service calls than when it was new. Upgrading to a new device is if your current equipment is starting to show its age is like resetting the clock and starting over with a fresh warranty.
Alas, there are even cons to getting brand new copiers when you sign a new lease.
The main thing to consider is your budget. Does the cost of the copier lease increase when compared with your existing copier? Can you manage that extra expense or will it negatively affect cash flow noticeably?
There is also the prospect of having to learn a new piece of technology. This concern may vary from workplace to workplace. Some offices are keen to learn new technologies while others are not.
Another consideration when upgrading your device is who is responsible for disposing of your old equipment? Will your provider remove and dispose of it or are you on the hook for those costs? This is particularly important if you are considering switching providers. Few providers want to pay to remove your old device if they are losing your business in the process.
Buy Out Your Lease and Equipment
At the end of your existing copier lease, you will have the opportunity to buy out the equipment. Contracts will sometimes vary in the exact buyout terms, but generally, it is either fair market value or a price that was predetermined upon signing the original lease.
Going without a lease sometimes seems like a great option, but this decision is not for everyone.
What the main advantage of doing a lease buy out is that you rid yourself of regular lease payments. This helps increase monthly cash flow and may allow you to invest in other areas of your business.
Once you buy out the lease, you also own the equipment and are free to sell it down the road to help offset the original cost.
When buying out a lease, you should primarily be concerned with cost. In the short term, the up-front cost of copier equipment could hinder your ability to make other efficiency improving office upgrades.
Another financial concern would be that while the lease payments will have been eliminated, the device will still maintenance and repair service as well as consumable supplies (toner and paper). If your lease was bundled with a service contract, the cost of consumables and repairs might have been hidden in the bundled price.
As your equipment gets older, these service calls could become more expensive and more frequent. You should carefully consider whether or not you should maintain the service contract.
Still Have Copier Lease Questions?
As I said in the opening of this post, there is no one right answer as to what you should do when your lease comes due for renewal. If your copier lease is coming up to its expiry date and you still aren’t sure what to do, you may want to also check out our article on the Pros and Cons of Buying vs Leasing Office Equipment.
If you have tough questions that you can’t find answers for, or just prefer to speak to someone, then don’t hesitate to reach out to us at Office Interiors. Our expert team can help you walk through your own unique needs to make the right decision for your business.