If you are embarking upon leasing a copier or printer, read below. This is an actual chat log from a customer who hit our website on Monday, July 23rd asking how they could get out of their lease, because they were shutting down their business. You can also view the actual lease and invoice from this terrible situation below the chat log.
We see this all the time, it is a very poor industry practice that many people can easily become victim to by “upgrading early”. Sometimes vendors will do this by offering a new machine or “special deal” while the customer still has a few years left on an existing lease.
Rolling an old lease into a new lease is simply stacking old debt on top of new debt and putting the chips in the banks favor, not yours.
The only time(s) you should roll an existing lease into a new one is when you have outgrown the volume of your current machine, you are growing rapidly or you only have a few months left and want new equipment and the remaining stream of payments is not drastic. Be sure you know every term and limitation of you new agreement.
We ALWAYS inform our customers of these terms so there are no surprises like this onem, which have this type of outcome.
Browser: MSIE7 on WinVista
Language: English (en-us)
Location: Cleveland, OH, United States (US)
Proactive prompt: Hello, thank you for visiting. Can I help you in any way?
I am shutting down my business and have 3 years left on my lease. I need to find a company to take over the lease.
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[10:28:29 AM] Eric J.: ok….sorry to hear that
[10:28:46 AM] Eric J.: what kind of machine is it
[10:29:03 AM] Visitor 1: I have a Kyocera TA250CI. Can your company help in any way?
[10:29:17 AM] Eric J.: what state are you in
[10:29:30 AM] Visitor 1: Ohio
[10:29:42 AM] Eric J.: I can try to help you, we do not service Ohio but I can still help if you wish. How much are the monthly payments
[10:29:56 AM] Eric J.: and is service included in the contract
[10:29:58 AM] Visitor 1: $492
[10:30:05 AM] Visitor 1: Yes
[10:30:14 AM] Eric J.: if you can send me the actual lease I can look at it and tell you if we can take it over
[10:30:43 AM] Visitor 1: Thank you. I will now.
[10:31:43 AM] Visitor 1: I just emailed it to you. I will stay on the chat.
[10:31:49 AM] Eric J.: ok
[10:32:57 AM] Eric J.: got it, looking at it now
[10:33:06 AM] Visitor 1: ok
[10:35:32 AM] Eric J.: where is the service part of this lease (that talks about copy count included, etc)
[10:36:43 AM] Visitor 1: I just emailed
[10:36:48 AM] Eric J.: ok
[10:38:32 AM] Eric J.: Ok so I understand this correctly, you are paying 492.00 per month PLUS the invoice for service right?
[10:38:58 AM] Visitor 1: Yes. You are right. I do pay extra for service.
[10:39:25 AM] Eric J.: ok. This is very high…when you signed this lease, did you roll in an older lease agreement?
[10:39:41 AM] Eric J.: or was this a brand new lease with no prior commitments added to it?
[10:40:15 AM] Visitor 1: I was already in a lease and then signed this one. I’m not sure if it was rolled in or not? I believe they cancelled it and restarted this one.
[10:40:35 AM] Eric J.: OK, that makes sense and explains why it is so hi. Was your older lease up or did it still have time left on it?
[10:41:25 AM] Visitor 1: I still had time left. In fact, it was set to end in the next few months.
[10:41:50 AM] Eric J.: ok. Because of that and the out of state issue, here is what I would do
[10:44:13 AM] Eric J.: We cannot assume this lease and because of your prior roll in, the amount is extremely high, which puts you in a terrible position because anyone looking for a 250ci right now can buy one new for 165 per month on the same lease term!
[10:44:57 AM] Eric J.: add service and they are at $371.00; your current is 449.00 and does not even include the service. You are in a position where there is no advantage for anyone to assume your lease whatsoever. It would of made more sense to pay off your old lease instead of rolling it in. This is where people fall victim to stacking.
[10:45:06 AM] Eric J.: I hate to tell you that, but you are in a really bad spot right now
[10:45:50 AM] Visitor 1: What are your thoughts? I did not personally sign for the lease.
[10:46:09 AM] Eric J.: I would try to pay it off, if you walk away from it, you will be subject to the legal proceedings stated in your lease….
[10:46:45 AM] Eric J.: I would try to pay it off every month
[10:47:08 AM] Visitor 1: ok. Thanks for the info. I cannot believe this and have no idea how we got ourselves into this situation. While it is not good, I do appreciate it.
[10:47:11 AM] Eric J.: yea…sorry for the bad news.
[10:47:17 AM] Visitor 1: [Visitor disconnected from chat (18 min)]