The Print Management Blog

How to: Office Equipment Lease Return

Posted by Neville Wiles on Sep 11, 2018 1:47:52 PM

lease agreement | end of lease  get out of leaseLeases can be a tricky thing to shake. Its almost like they are designed with the intention of keeping you in a lease forever. They do have nice benefits, financing and payment plans instead of all up front and, depending on the lease, the equipment doesn’t even have to be on your balance sheet. But they also have some negatives, think of a car lease, it’s something crazy like $0.25 a mile for any over the limit. Crazy stuff!

Office equipment leases can be just as penalizing and fine heavy.  They can also be a total nightmare when you are trying to get out of one.  We have created a quick 6 step plan that should, should, help you get out of your lease.

1. Notify, in a written letter, your intent to cancel lease

This is important. Make sure you review your lease terms and send this letter in the correct time frame. This time can be anywhere “between 120 – 60 days before the term of the lease” or even “between 90 – 30 days before the term of the lease”.  If you send this letter of cancelation too early or too late, they don’t consider it valid and then you can find yourself trapped in a year long renewal. This is terrible because now you’re making payments on equipment that you have paid off months or even years ago.

Below is an example of a letter you could send to your equipment provider for this. Feel free to copy it exactly or use it as a starting point.

[Date]

[Your company]

[Your company address]

The purpose of this letter is to provide formal notice, as of the date shown above, [Your company] intent to not renew the current [Provider / Partner] agreement, executed on [start date], for [your office equipment].  Pursuant to that agreement, you require a minimum notice of 90 days in order to avoid an automatic renewal of said agreement.  This letter provides the required notice.

We are also requesting a statement of any and all amounts due from [Your company] to [Provider / partner] that may be required to satisfy this agreement.   This amount should be provided to [Your company] in advance of our next monthly payment due date, and should be provided in writing to [Your company] at the address shown below.

Finally, also pursuant to the Accompanying [Leasing agent] Lease Agreement, please provide the designated return location for [your office equipment], which we assume to be your local business address.

Please respond in writing to the above requests, no later than the date of our next monthly payment due date under the Agreement. Your written response will constitute your acceptance of this cancellation.

Please contact me at [Your phone number or email] if you should have any questions.

Thank you for your cooperation in this matter.

 

Sincerely,

[Your name and company contact information]

Sometimes, but not always, the equipment provider requires you to send a letter to the lease provider as well.  Below is another letter example you can use if you find yourself in that situation

[Date]

[Your company]

[Your company address]

To Whom It May Concern:

The purpose of this letter is to provide formal notice, as of the date shown above, of [Your company]  intent to not renew the current [Leasing agent] lease agreement, Number ______ for [office equipment] that was executed on [Date], at a term of ______.  Pursuant to that agreement, you require a minimum notice of 90 days in order to avoid an automatic renewal of said agreement.  This letter provides the required notice.

We are also requesting a statement of the final amount due (“lease buyout”) as of today’s date, required to satisfy our financial obligations under this agreement.  This statement should include any and all amounts due from [Your company] to [Leasing agent] This amount should be provided to [Your company] in advance of our next monthly payment due date, and should be provided in writing to [Your company] at the address shown below.

Finally, also pursuant to the Lease Agreement, please provide the designated return location for [office equipment].

Please respond in writing to the above requests, no later than the date of our next monthly payment due date under the Agreement.

Please contact me at [Your phone number or email] if you should have any questions.

Thank you for your cooperation in this matter.

Sincerely,

[Your name and company contact information] end of lease notification letters | End lease agreement | get out of lease | woman typing on laptop

 

2. Contact your account representative to request buy-out information

All leases end with a final payment to satisfy the terms. It is important to talk to your current sales / account representative and gain this information from them. This will be what you need to pay to get out of the lease, so it is appropriately named the buy-out. Keep in mind that you may have to ask for this information a few times from your representative. I’m not saying that your sales rep is a jerk and wants to trap you (some very well may be though) but they are working for commission, so this is a bad blow to them, so human nature says that they will “get to it later” or push it off and then forget about it. If you bug them enough times, you will get the buy-out information you need whether you are returning the equipment or keeping it.

 

3. Give buy-out information to new provider or partner

If you are getting out of your lease because you are switching service providers, then your new partner may need that information. Sometimes they can have a program that will help you buy out of the lease or a variety of other reasons why this is important.

sales meeting to give lease information | End of lease | getting out of lease | Pointing at document

4. Get the return authorization and share it with your new partner

You will need to get the return authorization from the lease provider to send the equipment back. This should be a letter or an email with instructions on how to do the return and giving permission to move the equipment. Since it is a lease, there is normally a section of the agreement that states you will not move the equipment without permission, so to avoid any weird penalties, wait for the authorization.

 

5. Ensure the equipment is in working order and you get a 30-day window for return

Since the equipment is a lease, and not actually yours, they will want a working device sent back to them. Make sure that anything you are sending back is in working order and there are no major issues with it. Minor blemishes here and there are nothing to be worried about though.

You will also want to make sure that you are given enough time to send the equipment back. 30 days is normally more than enough time for you to work with your new provider for this.

Return of lease equipment | Freight truck returns | end lease agreement

6. Work with new provider on installation and removal and return

Your new service provider most likely will oversee removing your old equipment, installing the new ones and returning the old ones.  You should work with the new provider and schedule these dates with them. The new provider can also coordinate with a freight company to return your leased equipment on time and securely.

 I hope these steps help you navigate your lease return. Keep in mind that you may have to repeat a step a few times before completing it and being able to move to the next one.

Topics: Leasing, Printing Cost, Managed Print Services (MPS)