Use Leasing Rate Ladders to Save Hundreds of Dollars

If you’re looking at a copier lease rate, they likely give you a quote as to what the three, four, or five-year costs will be. However, there is one quirk in the leasing world that you can use to save yourself hundreds of dollars over your contract’s term.

The Two Questions That Will Save You $815

When looking at a lease rate for three to five years, you want to ask your copier rep a straightforward question: “Are there any breakpoints in dollar amounts where I will get a better lease rate?”

At this point, the copier rep will show you the rates. Once you see the prices for yourself, it’s time to ask yourself: “Am I close to reaching that breakpoint?”

Would raising your purchase price to meet that breakpoint save you enough money to make that jump worth it?

For example, if you were to purchase a small copier for $3,001 for a 48-month lease, the monthly cost would be roughly $74. If you paid $2,999 for the same copier, the bank would charge you $91 per month for the same amount of time.

Let’s break the numbers down:

For $2,999, you pay $91 per month.

For $3,001, you pay $74 per month.

In this example, paying $2 less for the copier will cost you an extra $815 over the life of the lease.

Why Do These Numbers Work Like This?

At first glance, the math doesn’t quite add up. How do you save so much money by only paying an extra $2?

A little known secret about leases, particularly copier leases, is they have stepping mechanisms where if you spend a specific dollar amount, you get a dramatically better monthly rate.

How would you take advantage of this stepping mechanism?

You want to ask if there is only one lease rate for any dollar amount or if the unit’s total cost varies. If the total cost of the copier has a factor, ask where these breakpoints are.

Sometimes you may be within $200 of the next breakpoint. You make up that $200 by purchasing install services, and now you save much more than $200 over your contract’s life.

Use every tool at your fingertips to save yourself money on your copier purchase. If your copier company has a stepping mechanism, and you’re in a position to take advantage of it, do without hesitation. An extra few hundred dollars saved can come in handy when you least expect it.

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