Upgrading your office copier is easy to take care when you wait to do so at the end of your lease. But what if you’re currently in a lease with another provider and you want out? This blog is your roadmap to navigating the tricky terrain of early lease termination.
Early Lease Termination
Sometimes it’s more than changing a device to meet evolving needs. Maybe your employees don’t find the current model works with their needs. Perhaps your current device is “down” too often, resulting in service calls, lost time and money. Or you’re simply not 100% satisfied with your current provider’s service. Whatever the reason, you may wish to explore an early lease termination with an existing office technology provider. This may seem like a daunting task, but fear not—as an experienced office technology provider, ABE can be a valuable resource in guiding you through the process and helping to minimize potential financial burdens.
Understanding Early Lease Termination Options
Before approaching your current provider, it’s crucial to understand the terms and conditions (TCOs) of your lease agreement, including the following:
- Early termination clauses
- Potential penalties for early termination
- Remaining lease duration
- Letter of intent (LOI) deadline – typically 60-120 days before term date
Having a clear understanding of these terms will help you make informed decisions as you navigate the complexities of early lease termination and find a solution that works best for your business.
Buyout to Return or Buyout to Keep?
Once you understand your lease terms, you can begin to explore whether early termination makes financial sense for your organization. You will need to work with another copier dealer to obtain lease buyout costs. If you decide to move ahead with the early termination, they should provide you with a letter of intent (LOI) to send to your current provider on your company letterhead for a Lease Buyout, which involves paying a lump sum to the leasing company to be released from your lease obligations. (The amount you’ll need to pay varies with how many months remain on the contract.) This can be a good option if you have 12 months or less left on your lease, you’re able to afford it and you want to be completely free of your current equipment.
After you send off the LOI and depending on the leasing company used, you will receive lease buyout quotes within 30 or 60 days, including buyout to return and/or buyout to keep. Once you have that information, your account executive can readily work with you to quote an overall upgrade for equipment that suits your needs.
Working Together to Find a Solution
We understand that early lease termination can be a complex process. That’s why we’re here to help you every step of the way. We can provide you with expert advice on your options, help you negotiate with your current provider, and find a solution that meets your needs and budget.
Take action and start a no-obligation conversation with an ABE member today! Contact us 828.210.4309 or email us.