What affects photocopier lease prices?
What affects photocopier rent prices? You may have two companies offing you a photocopier at the same cash price, let’s say its £5000, then when you come to sign the agreement the company says you could lease it over a longer period of time so you’re not paying the whole amount upfront.
Even though both companies have the same cash amount, the total you pay for the copier for the full period could be vastly different on that same amount of £5000.
You could pay over £7350 or you could pay £5800 for the same 5 years term. What would cause such vast differences?
Every photocopier company goes to a renting company and depending on how much business they are likely to do they will give the dealer rates that they can use, 5 years, 4 years, 3 years and 2 years.
What affects copy machine lease prices?
What affects photocopier rent prices? You may have two companies offing you a photocopier at the same cash price, let’s say its £5000, then when you come to sign the agreement the company says you could lease it over a longer period of time so you’re not paying the whole amount upfront.
Even though both companies have the same cash amount, the total you pay for the copier for the full period could be vastly different on that same amount of £5000.
You could pay over £7350 or you could pay £5800 for the same 5 years term. What would cause such vast differences?
Every photocopier company goes to a renting company and depending on how much business they are likely to do they will give the dealer rates that they can use, 5 years, 4 years, 3 years and 2 years.
Photocopier lease prices initial payments
Photocopier initial rental payments: All lease companies work with profiles, it could be a 1 + 19 or 2 + 20. This means you will be paying 1 payment upfront followed by 19 quarterly payments.
This can vary considerably and it affects the rate given so you could have a 3 + 19 rate in which the company leasing the photocopier will need to pay 3 payments on the first payment or 9 months of payments in advance in order to get the better rate.
This lowers the risk to the rental company and can increase the profit for the lease company and dealer.
Copier leasing rates & post payments
Photocopier post rent payments: This is a key one to be aware of as is very difficult to know you are entering this type of agreement, but it basically is payments at the end of a lease.
Sometimes it can be small like £50 to retain the title of the equipment or it can be £1000’s in a balloon payment (money held to lower the quarterly or monthly price but means a large payment at the end) or to retain the title of the equipment.
This all has to be agreed and looked at at the start of the agreement, looking at it when the agreement has started is too late, you’re then just waiting for the bill to come.
Office copier lease rates admin fees
Photocopier rent admin fees: Rental companies charge admin fees usually from £100 to £200 per deal and this is taken in the first payment, many copier sales-people do not show this on the proposals so its always worth asking the question, what is the admin fees?
Many lease companies charge other admin fees like late payment, annual fees, invoicing fees, collection fees (this could also be in the service contract) so it’s worth asking the question before you sign any lease to ensure you know what additional charges there will be.
Time of the month
I came across one rental company charging part month fees, this is where say your agreement starts on the 15th of the month, instead of just charging you the monthly amount each month from the first day of the month they would charge you the difference from the 15th to the first in the first payment.
They were passing this as a better lease rate to be more competitive but I think this was rarely getting to the customer and was more as profit for the dealer or to make the dealer more competitive.
