Considering a copier lease buyout can be a strategic decision for many businesses looking to optimize their office equipment expenses.
The copier you leased a few years ago was the perfect solution for your day-to-day business needs. Now, your company has grown, and with it came the need for new technology. Or maybe your service provider has been bought out by a larger company, and you are no longer getting the timely service that you require.
In either scenario, one thing is true: you have a legally-binding contract that is no longer meeting your business needs. What can your business do? You can find another service provider (like Doceo) who can assist you with buying out your existing lease.
What is a copier lease?
Let’s start with the lease. A copier lease is a legally-binding contract with a leasing company that maintains ownership of the copy equipment. Over the agreed time, your business pays a monthly fee to the leasing company for use of that equipment. At the end of the contract, you can either trade the device for a newer model or purchase the copier you had been using.
Because your lease is a legal document, you cannot simply stop making your monthly payments. If you stop paying the leasing company, your business could suffer legal recourse, including equipment repossession as well as a negative impact on your company’s credit score.
What do you do when you have 20 months left in the middle of a 60-month lease and the current equipment and/or service being provided is just not up to par? A copier lease buyout may be the answer.
What is a copier lease buyout?
It is very common for copier dealerships to offer you a buyout on your current copier lease to win your business. When the dealership agrees to a buyout, they will take all of your remaining payments and include them in a new lease contract.
Buyouts can vary depending on the dealership, but in general, they simply mean:
- The new copier dealership proposes new equipment and its customized service plan in a new copier lease.
- The new leasing company bundles the new lease with the rest of your old lease, and they cut a check to your existing lease company to pay off the old lease.
It’s important to understand that in a buyout, you are not truly getting “out” of a copier lease. You’re trading one lease for another lease that contains better equipment or more favorable terms.
Frequently Asked Questions About Copier Lease Buyouts
What is a copier lease buyout?
A copier lease buyout occurs when a business pays off the remaining balance on an existing lease – either to own the equipment outright or to exit the agreement early so they can switch to a new provider. Buyouts can be negotiated directly with the leasing company, and the amount owed typically reflects the remaining payments plus any applicable fees. Understanding the exact terms in your current lease agreement is the essential first step before pursuing a buyout.
When does a lease buyout make sense for a business?
A buyout makes sense when your current equipment is no longer meeting your needs, your service agreement is poor, or you have found a better deal with a new provider that outweighs the cost of exiting early. It also makes sense when your lease is near its end and purchasing the device outright at fair market value is more cost-effective than returning it and starting a new lease. If you are locked into a long-term agreement with outdated equipment and expensive service, the buyout cost may pay for itself quickly in savings and productivity gains.
What are the cost implications of buying out a copier lease?
The cost of a buyout depends on how much time remains on the lease and the terms your leasing company has set. Some leases include early termination fees on top of the remaining payments, while others allow a straightforward payoff calculation. In many cases, a new provider – like Doceo – can structure an arrangement that factors in your buyout cost, so the transition does not require a large upfront payment. It is worth requesting a formal buyout quote from your current lessor before making any decisions.
How does the transition to a new provider work after a buyout?
Once the buyout is complete and the existing lease is settled, the old equipment is typically returned or decommissioned, and your new provider delivers and installs replacement devices. A good provider handles the logistics of the transition, including network configuration, user training, and setting up a new service agreement. The process is generally straightforward when it is planned in advance, and experienced providers can coordinate timing so your office experiences minimal downtime during the switch.
What should I look for in a new copier lease to avoid getting stuck again?
Look for transparent cost-per-page pricing, a realistic monthly volume allowance that matches your actual usage, and a service agreement with defined response times. Pay close attention to end-of-lease terms, including what constitutes “normal wear,” how returns are handled, and whether you have a purchase option at the end. Working with a local provider like Doceo means you have a real point of contact when questions come up, rather than navigating a national call center when something goes wrong.
In conclusion…
A copier lease buyout is many times the only feasible option for a business that is unhappy with their current service provider, terms, or equipment. The beauty of a buyout is that even though it may seem like a daunting or tedious task, it’s quite simple. Your new service provider knows how to assist you with the process and will be beside you every step of the way.
If you’re in a current copier lease that no longer serves your needs, contact Doceo today, and one of our Customer Service Specialists will be happy to assist you.
Don’t spend another day (or another dollar) with service or equipment that is not serving your needs!
