FREQUENTLY ASKED QUESTIONS WHEN LEASING OR BUYING A COPIER IN THE MINNEAPOLIS ST. PAUL METRO AREA
I would like to offer 25 years of personal experience, condensed in the next few paragraphs. Should you buy or lease a copier? Sometimes this can be a daunting task, especially if you are an office manager or executive assistant who has been assigned to this decision. In future articles, I will be addressing how to compare the actual copier companies and their sales approach. But for now, there is some ground to cover that is fundamental to this assignment.
Leasing a Copier (also called an MFP, for Multi-Function Peripheral)
Is an extended payment option for businesses or private parties who need to upgrade or replace their current equipment with flexible payment terms. Leasing allows you to pick a payment term (anywhere from 12-64 months in most cases) and lease type (FMV or $1 out). The difference is, FMV leases are simple and are the most common leases executed within the copying and printing industry. FMV stands for Fair Market Value, which means at the end of lease term, the customer or buyer (the Lessee) has the option to purchase the machine for sole ownership at that time for its Fair Market Value. This is an appraised value that is determined by the bank issuing the lease (the Lessor). A $1.00 out Lease, or “buck out” is even easier. It is identical to a FMV lease, but the only difference is what happens at the end of the leasing term. Once your lease comes to fruition, instead of the option to buy your machine for the fair market value, the bank states the value of the machine at the beginning of your lease term (instead of the end), which of course is $1.00. So, you own your machine for a buck when your lease is over. Of course there is a catch here- your payments are higher than that of an FMV lease.
Below are answers to more frequently asked questions about MFP/Copier Leasing & Purchasing
•Should I lease, rent or buy a copier?
•How much does it cost to lease a copier?
•What is the difference between leasing and renting a copier?
•What is the average length of a copier lease?
•What speed copier should I buy or lease?
•Should I buy or lease an inkjet, laser copier, or digital copier?