ESCALATING LEASES

I have written several blogs over the years about things I don’t like about certain leases from certain leasing companies. My favorite topic on that are Evergreens better known as 12 month automatic renewals when you don’t remember at the end of a 5 year lease to cancel 90 days ahead of time. Yes, you heard that right! There are certain leasing companies that do five year leases where you have to hit the window three or four months prior to expiration to let them know your intentions not to renew. A lot of copier companies use these so beware!

Copier LeasesToday I want to address a different topic about leases. Some leases have language detailing automatic rate increases. Make sure you discuss this with the sales rep ahead of time so you know exactly what is meant by that. Is the leasing company referring to a maintenance agreement that is part of the lease or are they referring to the actual lease itself. If they are referring to the actual lease itself and not the maintenance agreement I would not sign it. Your last payment should be the same as the first (exclusive of the maintenance agreement).

We always separate the maintenance/supply agreement in a manner that voids that clause but many copier companies don’t. In other words, they let the leasing company control the billing. We do it differently. With us, we maintain control over the maintenance/supply billing which voids any such language. Again, this may sound confusing so discuss it with the sale prior to signing anything. If you have any questions about this topic please call us.