Leasing your copier or printer can make budgeting for a new machine a lot easier. However, you need to be aware of a few common copier lease mistakes that can cost your company unnecessary money throughout the course of your lease. These hidden costs can be tacked onto your lease payment without you even realizing it and add up very quickly.
Insurance on a Leased Device
This is a common practice. Everything is working great on your new machine, and the first invoice comes in $10-$25 higher than expected per device. Most businesses don’t question the payment and figure the difference is tax or other fees. But it is actually an unnecessary insurance charge that is already covered under your existing liability insurance policy. Avoid this common copier lease mistake by reviewing your first invoice with your vendor to clarify every charge.
Shipping Fees
It has become common vendor practice to build-in monthly shipping fees in order to recover out-of-pocket shipping expenses for toner replacement. While this may seem like a legitimate expense, it is only beneficial if you order toner once a month or more. If you do not, this charge then becomes an unnecessary expense that benefits the vendor. If your toner usage does not justify this built-in monthly charge, ask to be switched to a per order fee. Typical shipping charges are around $8 per order versus a $6-$15 recurring monthly charge.
Serial Number Discrepancies
This potential copier lease mistake is one that will not impact you until the end of your lease. 95% of all machines need to be returned to the leasing company at the end of the lease. If the serial number doesn’t match the one recorded on your original lease documents, you could be on the hook for the total fair market value of the device. This is not a common issue, but it is a potential situation that you should be aware of. When reviewing your first invoice or submitting your first meter read, confirm that the serial numbers match. In the event that your original machine needs replaced due to damage or inability to repair it to the required standards, you need to make certain that the leasing company has documented the “asset swap” in their records and once again verify the serial numbers match on your next invoice.
These unnecessary charges can be easily avoided. A thorough review of your first invoice could save your company thousands of dollars throughout the term of the lease. You should always question any unexpected fees or assessments. Also, make certain that your equipment information matches what is recorded with the leasing company.
For billing assistance or a free evaluation of your current lease agreement to avoid these common copier lease mistakes, Ford Office Technologies is ready to help by simply calling 800.633.3673.
