Xerox Office Equipment Leasing
Prior to putting your signature on say a Xerox Copier Lease, you will want to think thoroughly about which type of lease is best for you. Normally, when leasing office equipment, manufactures or finance companies do not prefer to their leasing option plans by any industry-standard names, so you will have read the description of each lease carefully in order to know precisely what you are getting into.
Fundamentally, there are two types of leases – finance and true. The one that you choose will be mainly dependent on what you hope to do with the equipment once the lease has expired or finished.
Finance leases are also known as capital leases or conditional sales. They work best for companies that aim to maintain the equipment at the conclusion of the lease. The primary gain to this sort of lease is that it offers you the alternative to buy the equipment for a minimal charge, sometimes $1. Payments on finance leases generally represent the full value of the equipment. A finance lease can also be a good choice of you would rather not involve big amounts of money.
True lease, on the other hand, is also known as tax lease payments. They do not encompass the full range of the Xerox copiers value. At the conclusion of the lease, you can also opt to walk away from the equipment or purchase it at fair market value, which for office equipment normally changes to at least 10 percent of the original buying price. A true lease enables you to completely claim lease payments for tax purposes while a finance lease can be viewed as an installment purchase plan and lets you to claim depreciation and write off finance charges based on ownership of the equipment. Before you sign any lease, make certain to have a talk with your accountant with regard to the tax implications, the IRS has numerous exceptions for various styles of leasing that only a tax expert would know.
To add, use vigilance when you read the fine print. Ask the lessor to explain any clauses that have sketchy wording. Also, check the agreement to be aware of what penalties are incurred for making delayed payments or defaulting on a lease, or to see if there are any hidden fees. Since a lease is essentially a loan, you may have to spend a loan origination fee that could be around 4 to 5% of the cost of each system. Make sure that the end-of-lease terms and purchase price are in writing. Or else, you may find yourself at the end of your lease not being able to prove, for instance, that you are entitled to a dollar buyout.
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