How Does a Printer Lease Buyout Work?

Many businesses believe their only two options for acquiring printers are to buy them outright or lease them. 

Leasing may seem like the lesser of two evils. However, not all leases are created equal, and will not suit your printing needs. So what happens when you’re stuck in a lease that isn’t serving you anymore? One option is a lease buyout or early buyout.

Let’s explore how printer leases and buyouts work, along with some red flags that may signal it’s time to consider a buyout. 

How do printer and copier lease agreements work?

Leases are usually tied to specific machines, identified by their serial numbers, rather than the type of service they perform (e.g. printing, copying, or faxing).

Prices are typically based on the length of the contract (e.g. 36 months, 48 months, or 60 months). Similar to a car loan, longer terms come with lower monthly payments, which might seem appealing at first. The challenge with these longer terms, however, is that machines often break before the lease ends. Additionally, as your business evolves, the equipment you originally selected may no longer meet your needs years later. 

A 36-month lease comes with higher monthly costs, but offers greater flexibility, allowing you to upgrade or change your machines after three years to better suit your evolving needs.

Many think that buying the printers outright is the only alternative to leasing, however, you might want to consider renting a printer service instead. This option goes beyond just leasing the machines — it includes parts, maintenance, and ongoing support. Unlike traditional leases, which focus solely on the hardware, this ensures that your equipment stays functional and well-maintained for the length of the contract.

If you’re frustrated by your current setup or just ready for a change in your printing environment, a printer or copier lease buyout may be a good step to take toward a better option.

What is a printer or copier lease buyout?

A printer lease buyout is the decision to end a lease by “buying back” the printer or copier earlier than the end date of the contract. Some businesses choose to buy out their own leases, but more often, a competitor will buy out a contract from the client’s original provider.

For example, let’s say you have ten months left on your contract, but your current machine setup doesn’t meet your needs anymore, so you contact a new vendor. They help you identify the best equipment and processes for your business, implement a new system, and sign a lease buyout agreement with you. 

In this scenario, the remainder of your existing lease (ten months) would be rolled into your new, more favorable lease, while your new vendor would pay the remainder to your previous provider.

When is it time to break a printer lease?

You might assume that your current setup is the best option for managing your business’ printers. However, certain signs indicate it’s time to consider a new provider, explore different strategies for managing your printer environment, or both.

Here are some red flags to look out for:

• Maintenance and repair issues — Unexpected downtime can hinder progress and disrupt crucial workflows. If maintenance and repair requests aren’t addressed promptly, or your provider can’t give you a straight answer regarding when parts or service will be available, it may be time to make a change. 
• Communication challenges — When printing is an imperative part of your workflow, an unresponsive provider can lead to unnecessary downtime and frustration. Your vendor should provide reliable, accessible customer support to ensure your equipment keeps running smoothly. 
• Unfavorable change orders — Contract changes often come with additional costs and may be subject to terms that are less favorable than your original agreement. If you’re feeling penalized for having evolving needs, it's time to change providers.
• Too many vendors on your roster — Managing multiple service providers for fax lines, digital content management, cloud solutions, printer leasing, and IT services can lead to communication breakdowns, heavier administrative workloads, and reduced efficiency. Consider simplifying your operations by consolidating with a single provider who can manage multiple services. 

Transform your printer environment with UBEO

If your current printer lease isn’t meeting your needs, it may be time to consider a new lease or an early buyout. However, another option to explore is renting printers along with a service contract, which can provide:

• Comprehensive solutions — Instead of being locked into a single machine (or type of machine) for the duration of a lease, you pay for services and solutions as a package. This enables you to bundle maintenance, support, and equipment into one streamlined agreement.
• Accountability and support — Service agreements hold vendors accountable for the performance of your solutions. This means faster repairs, dedicated representatives ready to troubleshoot issues, and proactive support tailored to your needs. 
• Enhanced flexibility — Contracts tied to service, rather than specific equipment, offer more adaptability, allowing you to adjust as your business grows or your requirements change. For example, with UBEO’s U-Manage program, you can swap out equipment without additional fees.

Want to lease a printer without getting locked into an inflexible contract? Have an existing lease that no longer aligns with your business needs? Get in touch with UBEO to discover a more flexible, service-oriented approach.