| If you've looked at photocopier prices, you will realise | | | | convince you to upgrade. |
| that for many businesses, an outright purchase may | | | | However, when you do upgrade, you still have to pay |
| not be the most attractive option. For UK copier users, | | | | off the remaining 2 years of financing, assuming you |
| for example, there may be a corporation tax, and | | | | initially signed a 5 year lease. And that means that, in |
| VAT, benefit to pursuing a different route - that of | | | | signing a new 3 year lease, you have around a 40% |
| leasing. | | | | premium over and above the photocopier price to build |
| But it is wise to be wary. | | | | in. This leaves you with two choices - either accept |
| A common sales tactic is for the copier salesperson | | | | higher charges for the next 3 years, or accept a |
| to persuade you to sign a longer lease, typically 5 | | | | longer term (maybe another 5 years). If you go with |
| years, as a way of reducing your quarterly payments | | | | the latter approach, there is a good chance that you |
| (UK copier companies generally ask for quarterly | | | | will end up again renewing your copier lease before |
| payments). But does this actually make sense - or is it | | | | the 5 year period is up, triggering another lease |
| a sales pitch that will benefit the photocopier company | | | | extension. |
| but cost you a lot more in the long term? | | | | Of course, you might be tempted to play hardball, pay |
| To find out the answer to this question, you first need | | | | off the remaining 2 years of finance and show your |
| to understand manufacturer thinking. Their | | | | salesperson the door. However, if you have signed a 5 |
| photocopiers typically have a useful life of 3 to 5 years | | | | year service agreement to run in parallel with your |
| if adequately specified. Many will last for much longer, | | | | copier lease, you will find this impossible to do - the |
| but the maintenance costs associated with your copier | | | | copier salesman will have built in severe contractual |
| will typically increase after this point in time. | | | | penalties for doing so. |
| In reality, the copier salesperson will sell you a machine | | | | When you are signing that copier lease, do not sign |
| that is good enough for the job, although you will often | | | | anything longer than 3 years. Check the photocopier |
| pay near retail prices for it. However, what typically | | | | price online to ensure that unreasonable profit isn't |
| happens is that after 3 years, the copier starts to | | | | being masked by the finance agreement. And never, |
| become problematic and the salesperson will try to | | | | ever, sign a service agreement for 5 years. |
