How To Get Out Of A Copier Lease Without Losing Your Shirt!

Changing demands, financial difficulty, obsolete equipment, bad results, or misrepresentation by the leasing firm are all reasons that a company may choose to end their copier lease deal.

Any laws are meant to be bent, and the same can be said for a copier lease that no longer meets your company’s needs.

If you’ve reached a point where a copier lease is no longer the best fit for your company, you might be looking for advice on how to split a copier lease without losing your shirt!

But first, what is a copier lease?

A copier lease is a legally binding agreement between a lending agent and a company. The rental firm gives the company access to a copier for a set amount of time, normally one to three years.

In exchange, the corporation pays the rental company on a daily basis. At the conclusion of the leasing term, the company has the option to buy the copier.

The firm is legally obligated to reimburse the contracting company in increments for the length of the copier loan, and the terms for terminating the deal are well defined. As a result, copier rentals are not particularly easy to get out of.

Now consider the difference between a lease and a service agreement on a copier or multifunction printer.

A Service Agreement is an arrangement or partnership you’ve made with a copier supplier or manufacturer about the terms of their operation, such as what they’ll give you and at what cost.

The machine(s) being rented is all that matters in a copier lease. Everything else is covered by the service arrangement, which includes service calls during downtime, remote assistance, delivery orders, and system servicing.

Office equipment supplier in Concord, California

How to Get Out of a Copier Lease

Keep in mind that breaking a copier lease isn’t simple, or else any company will do it. This is why it’s important to read the lease terms and conditions thoroughly before signing on the dotted line to ensure that you’re fully satisfied.

1. Review the contract’s cancellation provisions.

Many copier retailers and distributors will have penalties in their terms if you terminate your contract early or violate their termination policy.
Such companies only impose fines if you violate their Letter of Intent rules, and others would require you to complete the full contract, particularly if you switch providers.
Before you sign a long-term deal with a copier company, find out if there are any early-cancellation penalties in the arrangement.

2. Look at what constitutes a contract violation.

It is possible to cancel a service contract, but it is impossible, as it is in most contracts. Contracts safeguard both the client and the service supplier. The only way to get out of a service deal is for the company to commit gross negligence. This does not imply that their operation is unreliable or that the computer fails often.
It’s possible that the leased copier would fall short of its advertised capability.
Check to see if the lease deal has any unfulfilled performance promises. If it does, the copier rental firm could be in violation of the agreement.
Performance provisions, on the other hand, are most often used in copier service agreements.
Gross neglect would be more serious, such as the provider failing to service the machines and never going back to repair the computer.
Be sure you know how much your copier should be serviced and whether your service plan is sufficient for your equipment; otherwise, you could face lengthy downtime with no resolution.

3. Check the contract for an assumption clause.

In order to win your business, a rival dealer would often offer to “buyout” your lease. An assumption clause requires another firm to take over the copier lease’s remaining terms.
The opposing dealer will roll the cost of your remaining lease onto their current lease in this case.
This helps them to recoup the funds they used to pay for your old equipment.
You can easily rid yourself of the financial pressure of monthly installments by subleasing in this manner. You will also be responsible for the rented facilities as the original lessee if anything went wrong with it.

4. Pay off the lease as soon as possible.

This alternative usually carries no fines and could even save you money. You would, though, be left with appliances that you will no longer like.
You can recoup some of the expenses by reselling the copier, but used copiers and printers usually have poor returns.

5. Consult an attorney.

If you have questions about a lease’s conditions, you should hire a lawyer to review it and advise you on your legal options.
Legal costs make this not the most cost-effective option, but it might save you a lot of time and aggravation.

6. Gather evidence and document everything.

Gather facts to back up the decision to break the lease early.
You are essentially presenting a court argument, and you would be expected to provide testimony in order to achieve a favorable decision.

7. Notify the copier leasing service.

To legitimately cancel the lease, you must notify the leasing provider and have supporting paperwork.
It’s also a good idea to keep track of all updates from the leasing service, as well as any amendments to the lease agreement or other official activities.
This will aid in the support of your case if any further problems occur.

8. Immediately cancel your automatic lease renewal.

If you don’t want to extend your contract, certain contracts have conditions that compel you to give written notice.
You will be asked to provide anywhere from 30 to 180 days’ notice under this provision, which is also known as a “evergreen clause.”
Failure to reach these deadlines could result in the lease being automatically renewed, making it much more difficult to get out of.
Read the copier lease’s automatic extension terms and follow certain conditions to avoid them.

9. Be aware of the possibility of early termination payments.

The majority of successful lease cancellations result in an early termination fee.
You’ll also need to cover the costs of packing and shipping the equipment back to the rental firm, as well as purchasing insurance on the return journey.
To stop any unwelcome surprises, figure out how much these payments would cost in advance and have the funds on hand.

10. Keep in mind that knowing your choices and closely reviewing your condition will help you get out of your copier contract. Be sure you’re well-informed in order to prevent issues with potential copier rentals.

Look for copier leasing companies by doing some research.
Read the lease terms carefully and compare them.
Anything you don’t understand, do some research and ask questions about.
Payment changes, extension terms, and surcharges are all warning flags to look out for.

Are You Looking for A Business Photocopier Near Concord, California?

Office Machine Specialists has been servicing and selling office equipment since 1995. A family-run business that has dedicated our efforts to providing the best equipment options and after-sales service to our clients. Our goal is to ask the right questions and guide our customers to make smart decisions about new machine leases and purchases. We were servicing copiers long before the internet was a viable resource, and have transitioned to the digital workflow environment of color printing, scanning, account control, and fleet management. With over 20 years in the industry, we have extensive experience with many brands and consider OMS to be a valuable resource to any organization. Contact us for all of your copier needs here!

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