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 allows full tax deductions on payments, while a finance lease enables depreciation and write-offs based on ownership. Before signing a lease, consult your accountant about tax implications and IRS exceptions related to leasing.
To add, use vigilance when you read the fine print. Ask the lessor to explain any clauses that have sketchy wording. Review the agreement for penalties on late payments, defaults, or any hidden fees. A lease acts as a loan, often requiring a loan origination fee of 4 to 5% of each system’s cost. Make sure that the end-of-lease terms and purchase price are in writing. Otherwise, you might end your lease unable to prove your entitlement to a dollar buyout.
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