Tricks of the Trade
A little known element of lease is the use of steps. Lending institutions use these steps for copiers and most other types of leases as well.
Let’s say you were about to buy a little copier for $3001 on a 48 month lease. Your monthly FMV cost would be $74 or so. Now let’s say that you were to buy the same exact machine for $2999. The lending institution would charge you in the neighborhood of $91 per month.
Monthly FMV lease for the same copier:
$3001 – $74
So by paying two dollars less you save about $815 over the life of the loan. This is lease stepping in action. If you want to make sure that you aren’t on the edge then you need to ask if there is one lease rate, or if the rate varies on the cost of the copier. If you are within a couple hundred dollars, why not get the copier installed? It could get your lease rate lower and save you some work.
Are you shopping for a copier? Give us a call, we would love to help.