15 Jul Hire a Printer Lease Contract – What You Need To Know
Deciding whether to hire a printer or buy one outright is not a decision to be made lightly. As many people have found out, buying a printer you almost never use can be a very large and unnecessary expense.
On the flip side, hiring one can leave you with a very large cumulative bill, but when you don’t have the capital outlay for a new unit, what other choice is available to you?
Well, leasing or hiring a printer is not a bad decision, if you know how to negotiate the contract such that your business is not left high and dry after you make your monthly payments.
The first contract concern is the interest rate. As the person negotiating on behalf of your business, you need to be savvy about the interest rate over the period of the lease.
Some may see an interest rate of 5% for the first year and think they are getting a good deal. However, before you sign on the dotted line, consider the long-term interest rate.
Check that the rate for the second and third years does not increase exponentially, as sometimes occurs. The representative with whom you are dealing has an obligation to show you a financing sheet, that is, give full disclosure, so that you can make an informed decision.
Next, consider the terms applicable to the lending rate. Is there an escalation rate applicable to the rental? A large printer for your office can cost upwards of R100 000, and if you are leasing a printer for hire, the long-term costs after escalation could leave you broke.
Remember that a good financing provider will consider not just printer prices, but also the end cost for the user. Similar to buying a car, you need to ensure that you don’t end up paying more in interest payments than you do for the actual cost of the unit.
Finally, don’t forget to ask about ownership at the end of the lease period. Short-term printer rentals won’t have this clause, but those indicating a long-term lease may have a residual cost to be paid at the end of the lease period.
If you have been R3 000 for a three-year lease of a printer, and then have to pay another R50 000 at the end of the term, you are getting none of the benefit, but are liable for all of the cost, with the final amount most likely exceeding the value of the unit.
Most reliable printer sales and rentals providers, such as DocX, work to service the needs of their clients, so ensure you speak to the service providers that want to assist you, and not just make money on your needs.