Some rules are made to be broken, and the same holds true for a copier lease that no longer suits the needs of your business. If you've come to a crossroads where a copier lease is no longer the right fit for your company, you may be looking for guidance on how to break a copier lease with as little hassle and financial repercussion as possible.
When to consider breaking a copier lease
There are several reasons that a business may decide to lease a copier in the first place. First and foremost, a copier lease may make sense if you don't have the extra funds to pay for a brand-new office copier in full. You may also choose to lease a copier for a short-term project that requires high-volume, commercial copy support.
Whatever the case may be, there may come a time when you are no longer satisfied with your copier lease contract. Here are some examples of when it may make more financial sense to break instead of keep a copier lease:
- You can no longer afford monthly lease payments.
- Your business is downsizing and no longer needs a high-volume copier.
- You found out that competitors are paying less in their copier leases through other vendors.
- You didn't read the lease terms and conditions carefully and have signed an unfair agreement.
- Your lease has been automatically renewed before you had time to cancel.
And the list goes on and on. If any of the above scenarios sound familiar to you, it may be time to consider breaking your lease. In some cases, it is possible to legally break a copier lease, while minimizing financial risk, as we will discuss in the next section.
3 loopholes to get out of a copier lease
Keep in mind that a copier lease isn't easy to break, or else every business would be doing it. This is why it is essential to read your lease terms and conditions in detail before signing on the dotted line to verify that you are 100% happy with the agreement.
A lease is a binding contract that may be hard to get out of. Nevertheless, there are several options available to you to break a copier lease, including:
- Cancel your automatic lease renewal immediately. Most copier leases have an auto renewal clause that can keep you in your lease indefinitely until you opt out.
- Pay off the balance. If you are desperate to get out of your lease and can afford to do so, you may be released from the agreement if you pay the outstanding balance in full. Before considering this option, determine if there are any penalties for paying out early.
- Request refinancing. If your current copier is no longer cutting it, you can request that the balance left on your lease be rolled over into a new lease for an upgraded copier. Refinancing is only recommended if you are in need of a newer or higher volume copier.
To make a clean break, industry experts recommend paying for a copier service agreement separate from a copier lease. Otherwise, a lessor may require you to keep the lease throughout the length of an attached service contract that could extend three years or longer.