4 Effective Ways to Get Out of a Copier Lease Early
The decision to lease a copier can be a cost-effective way to avoid the required initial capital for an outright purchase. Many copier leasing services worldwide allow businesses to utilize up-to-date technology without the burden of full ownership. If you’re in the market for one, choosing a copier lease in Kansas City is a great local option.
However, business needs change, and sometimes you may need to get out of a copier leasing service in Kansas City early. Exiting a lease is complex and often involves a financial penalty, but there are strategic ways to minimize your loss and successfully terminate the contract.
4 Ways to Get Out of a Copier Lease
If you find yourself needing to terminate your contract early due to financial problems or changing business needs, these options offer the most common ways to resolve your copier lease:
| Option | How It Works | Best Used When… |
| 1. Opting for a Buyout | You pay a lump sum to the leasing company, which includes the remaining lease payments and the copier’s residual value (Fair Market Value). This officially ends the contract. | You are deep into your contract, and the buyout cost is lower than the remaining payments plus penalties, or when your business needs an immediate exit. |
| 2. Lease Transfer/Assumption | You find another company or entity (the “Assignee”) willing to take over the remaining terms and financial responsibility of your lease. You are often released from liability once approved. | Your contract includes an assumption clause, or you can negotiate the transfer, which is the cleanest way to exit without penalties. |
| 3. Negotiating with the Company | Contact your copier company or lending institution to negotiate alternative solutions, such as renegotiating the monthly payments, shortening the term, or upgrading to a new machine. | You are a valuable, long-term customer, or when a full exit is too costly, and modifying the terms is an acceptable compromise. |
| 4. Contract Termination Review | Carefully review all terms and conditions to identify any cancellation processes, termination penalties, or, critically, whether the company has failed to comply with any performance standards. | You suspect the copier or service has not met the performance standards advertised, or you need to understand the full cost of an early exit. |
In-Depth Look at Exit Strategies
Opting for a Buyout
A buyout is often the most straightforward way to terminate a copier lease early. The buyout amount is typically calculated as the sum of your remaining payments plus the machine’s residual value.
- Financial Consideration: A buyout may make the most sense if your current monthly financial obligations are too high, or if competitors are paying far less for similar services.
- Negotiation Strategy: If a new copier dealer is trying to earn your business, they may offer a “lease buyout” where they pay off your existing lease and roll that cost into a new lease with them.
Reviewing Lease Terms and Conditions
Before taking any action, you must understand your rights and obligations by thoroughly reading your legal document.
- Check for Penalties: Look closely for sections detailing early termination penalties and the required notice (often 30 to 180 days) for cancellation.
- Performance Clauses: Check for clauses that allow you to terminate the lease if the lessor fails to perform up to its legal requirements, such as if the copier didn’t meet advertised operational standards.
Calling your Copier Company and Lending Institution
Contacting your leasing company or the financial institution funding the lease is essential for negotiation and exploring transfer options.
- Assumption Clause: Check your contract for an assumption clause. This legally defined clause, when present, allows another credit-worthy company to assume the remaining terms of your lease, potentially freeing you from all future liability.
- Negotiation: While calling may not guarantee an exit, maintaining a professional and polite tone can lead to a reduced settlement or a mutually beneficial agreement.
Leasing a copier can be tricky to manage, especially if your financial situation changes. Always ensure that the exit means you choose provides you with the maximum benefits and advantages while minimizing penalties.
General Service and Quote Requests
If you plan to get copiers for your office, you can buy copiers or lease copiers. We can give you options for getting the copy machine that you want. You can contact our local copier leasing services department in your location.
For all services, call Clear Choice Technical Services:
- Phone: (913) 203-1300
- For copier leasing, request a quote today.
- For short-term rental inquiries, request a rental quote.
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