What you don’t understand about your copier lease could end up costing you more money. When your copier lease ends, you have to understand the type of lease you have because this will determine what happens. Also, understand the terms and conditions in the contract of your copier to avoid hidden charges.
There are two types of copiers leases: fair market value and one dollar buyout leases. At the end of a fair market value lease, the company decides on what they believe is a fair price for the fair market value of the copier, based on the original retail price. If you want to keep the copier, pay the company, and it will be yours. If not, alert the company 60-120 days in advance, or you could be stuck paying for more months under the automatic renewal ever-green clause.
With the one-dollar buyout lease, you will almost always want to pay the dollar at the end of the lease and buy the copier. Why shouldn’t you just go with the one-dollar buyout lease? The biggest reason is because you will always pay more for this type of lease. This is a better option if you plan to own the copier at the end of the lease. Otherwise, the fair market value lease makes more sense.