Xerox contract options

[TLPSfremantle]

Hi,

so, I'm pretty much working a soletrader these days, and the majority of my work is with my main occupation as a designer.

We have a Versant 80 that we have through, i think a 4 year lease with Fuji.

My question is, has anyone any experience with breaking lease? Are there options? Payouts etc? I haven't discussed it with Xerox as yet, as right now i'm just trying to figure out the best plan of action (take on a pressman and see if we can up the work, or try and get rid of the in house print altogether)

I'm going to assume that if we ask to cancel our contract, we'd either have to pay a fair chunk or it would be declined outright?

Any info appreciated.

 

[Possumgal]

Some contracts have a buyout provision, that is, you can pay off the machine and own it outright, but you need to see if your contract has that. If you want to go that route, take into account that you'll have to pay for all your supplies and service calls.

 

[Lorenzo lab guy]

I don't know about the typical lease contract in Australia, but in the US a finance lease is pretty hard to get out of without going through bankruptcy. Once you stop paying ,the total amount becomes due in full at some point and finance group comes after the lessee. There is really no substitute for reading your lease. Then I would talk to your attorney. In parallel to that you should look around to see if anyone would buy it or take over the lease. I would get legal advice on that as well. The Versant is a good machine and if you have paid a couple of years on a 5 year lease and it has low clicks someone should want it. I would talk to the finance company last, because at any hint that you are going to default they will most likely go into attack mode.

 

[MailGuru]

.................. i'm just trying to figure out the best plan of action (take on a pressman and see if we can up the work...............

Just out of curiosity, why would you hire a "pressman" to run a Versant 80?

 

[DiVision]

Same in Canada, a lease signed with Xerox is very hard to break or let go. If they think that you have some equity, they will hit you hard if you stop paying the bill. You have to be ready to go through bankruptcy to get rid of them with every problems that might arise with that option. As said before, it should'n be too hard to find someone interested in having a Versa 80 as it is really is a good machine - it will cost you something to convince them but it is worth a try.

 

[Craig]

Not only will you be buying out the lease, but you may have to buy out any base maintenance that was built into the lease.