Some studies suggest that up to 80% of office technology purchases are leased, and generally through leasing companies recommended or chosen by the vendor. In an industry where a high percentage of products are leased, doesn’t it make sense to lease from a trusted partner?
The importance of a well written and fair consumer lease is often overlooked. In our years of experience, we have observed many leases written by leasing companies and vendors that weren’t in the best interest of the consumer.
The most common problem is automatic lease renewals. This is where the lease that was supposed to end on a designated date renews for a predetermined period, usually quarterly or annually. It generally happens if the consumer has not notified the leasing company of their intentions prior to the end of the lease, usually within 3 to 6 months. There are other problems as well, such as the requirement to ship a product across the country at the end of the lease or hidden fees throughout the lease. Many leasing companies offer low (teaser) rates to attract business and then benefit from extra fees or hidden payments, resulting in the consumer actually paying more over the term of the lease. Office technology vendors are often offered incentives from leasing companies to promote certain programs to the consumer. Some vendors even represent their company names on leasing documents that are in fact “bank owned” leases. This practice is known as “private labeling”, and can be deceiving to the consumer.
The real question is:
Was the lease written to the benefit of the customer or to the leasing company or office technology vendor?
Most obviously, and as much as possible, it should be to the consumer’s benefit.
Here are some questions that you should ask your office technology provider to ensure the lease is written to your benefit:
- Beside my lease payment what other costs can I expect throughout the lease?
- What are my obligations at the end of the lease?
- What are my insurance obligations?
- Is there a notification period required prior to the end of the lease?
- If my needs should change prior to the lease ending, what are my options for changing the equipment and how can we do so without a penalty?
What you can expect from Buckmaster Office Solutions:
- We offer our own genuine “in house” leasing, when it makes sense, as well as leasing from trusted leasing sources that maintain an excellent reputation for fair and reputable business practices.
- A lease written with fair terms and designed to the consumer’s benefit when possible.
- An upgradeable lease and the ability to easily change equipment when needed.
- A company that you can trust when leasing is part of your office technology transaction.