You’ve decided to lease your copier instead of purchasing the copier outright. Now you are wondering how to determine the correct term length for your copier lease.
What Term Length Options are Available for Copier Leases?
There are 12, 24, 36, 39, 48, 60 and 63-month term options. However, the most common lease term is 60-months. Additionally, promotional rates may apply when selecting a brand (like Lanier) on 36, 48, 60 or 63-month agreements.
Customers often come to us asking what lease term is right for them.
One of our customers, a manufacturing company, was preparing to sign off on a 36-month lease. They wondered if a 60-month term would be a better option. Their line of thinking was, if we extend the term, our payments will be less. However, there was one important piece they didn’t factor in.
Things to Consider When Determining Lease Length
Each device has a speed per minute associated with an anticipated output volume, which means the copier has a limit as to how many pages in can efficiently print in a month and in its lifetime, a “sweet spot” if you will. The speed of the machine should correlate with the monthly volume you produce.
Here’s an example: The ideal volume for a copier with a speed of 35 pages per minute should last 36 to 60 months while producing somewhere around 8000-10000 pages per month.
Copies run in addition to the intended amount will result in more issues with the device, and more service calls for you.
Because of this, the volume is a pertinent factor in determining the correct length of contract to maximize your device’s performance.
In this scenario, the manufacturing business runs a high amount of volume on the device, so increasing the term would mean increasing the expected output over the life of the device. Doing so results in a decrease in device performance since the original equipment will only last 3 years.
Ultimately, the customer felt the 60-month lease was a better fit for them, so a higher volume device was selected in place of the original device quoted. The customer was able to extend their term and get a device that is appropriate for their environment.
Regardless of the term you choose, you may experience additional service needs in the last 6 to 8 months of your term just because of the wear and tear on the device.
There are so many factors to consider when determining what the correct copier lease term is for you. The best thing to do is to engage with a company who can guide you through this process to be sure you are making the most informed decision.
Unsure if leasing or buying print equipment is a better option? Read this helpful article.