I need help finalizing

[M@CK]

Hi there all.

Here's the crisis ...
I will be finalizing my purchase of a color printer next weak and I was wondering about some minor details.
I got all the options written down so no surprise after the signature.
What's the best to do wen acquiring such equipment. I was looking in to a lease of 48 or 60 month or maybe I missed something and strait purchase is better ?
I was really into leasing for 48 month.
heres what I think: One, I will be saving on interest over the 60 month and two, I can change manufacturer if a "great new product" hits the market.

Now wen I asked both Rep's from the two different companies machine I was looking at, both really hesitated on giving me the 48 month rates.
Is their something wrong with a 48 month lease ?

Ill be very grateful for the enlightenment.
Regards
M@CK

 

[Craig]

What is the equipment you are looking at?

 

[PineyBob]

Hi there all.

Here's the crisis ...
I will be finalizing my purchase of a color printer next weak and I was wondering about some minor details.
I got all the options written down so no surprise after the signature.
What's the best to do wen acquiring such equipment. I was looking in to a lease of 48 or 60 month or maybe I missed something and strait purchase is better ?
I was really into leasing for 48 month.
heres what I think: One, I will be saving on interest over the 60 month and two, I can change manufacturer if a "great new product" hits the market.

Now wen I asked both Rep's from the two different companies machine I was looking at, both really hesitated on giving me the 48 month rates.
Is their something wrong with a 48 month lease ?

Ill be very grateful for the enlightenment.
Regards
M@CK

48 months usually have higher interest rates than either 36 or 60 months. Therefore Sales reps are reluctant to offer them as it cuts into the reps gross profit.

At year end there should be some 36 month 0% financing floating around and the way to get it is to get a purchase price quote and then turn and say I'll take the Zero Precent financing.

Look into Section 179 of the IRS code regarding Small Business Tax Credit. It's changed since I sold but I think it's even better than it was. IIRC you can take two years of depreciation over the first 13 months with a December purchase.

Lots to consider at this time of year. Equipment is a huge consideration, but so are the aquisition and operating costs over the projucted life of the equipment.

Other Considerations:
Dealer support - Is the dealer well regarded by your competitors/colleagues?
Are the techs trained by the manufacturer?
How many techs are qualified to service your equipment?
How long have they worked on your model or similar models?

Service Contract

• Rule Number one, NEVER assume facts not in evidence or take the word of the Sales Rep. Read EVERY word of the agreement and make sure you fully understand every paragraph, sentence and word therein.
• Escalators should have a cap. usually not more than 5 to 10 percent per year. BEWARE I know of some dealers who reserve the right to raise your service price AT ANY TIME. Which they do.
• Does the Service Provider have a qualified systems engineer on staff and what if any are the additional charges for network support?
• What are the "Like for Like" provisions if it turns out you buy the ONE lemon ever made? Most manufacturers have some sort of provisions to provide a like for like it's just that getting the manufacturer to follow through will take roughly the same effort it would to get a third party cansidate elected President.

This is not an all inclusive list, just some things to be aware of. Remember it's the end of the year in a softeneing economy. Your Sales Rep may need your deal to qualify for Presidents Club or whatever award program their company has and therefor might be far more willing to deal.

Good luck and stay in touch let us know what you buy

 

[gig0]

M@ck,

from personal experience, DON'T TELL THEM THE MODEL otherwise the thread will get hijacked on some other tangent! LOL


EDIT:Good info Bob, btw.

 

[M@CK]

I'm so grateful for this forum, what would I do without it...

PineyBob I'm in Canada, so the IRS code for tax break don't apply to me, I'm sorry I didn't mentioned this before.

I have read both parties contract in and out and understand all that is written in them.

Neither of them offered me a 36 month, I'l have to look this up on monday.

One is offering the 3 first years fixed service fees and 5% maximum the next 2 year on a period of five years.
The other has a 2% maximum fixed, year over year increase for five years.

Both have good machine replacement clause in the contract in case of a lemon and as far as I know both have a solid reputation in that field.

I even talked with the owner of one of the said machine that had is replace after a couple month of use, he got a bran new machine NOT a refurbished model nor a used one.

I really think I did all I could in the negotiation process and the only dilemma I got wright now is how to pay for the thing ...

Again, Thanks allot guys
Regards
M@CK

P.S. gig0 thanks for the advice !

 

[PineyBob]

I'm so grateful for this forum, what would I do without it...

PineyBob I'm in Canada, so the IRS code for tax break don't apply to me, I'm sorry I didn't mentioned this before.

I have read both parties contract in and out and understand all that is written in them.

Neither of them offered me a 36 month, I'l have to look this up on monday.

One is offering the 3 first years fixed service fees and 5% maximum the next 2 year on a period of five years.
The other has a 2% maximum fixed, year over year increase for five years.

Both have good machine replacement clause in the contract in case of a lemon and as far as I know both have a solid reputation in that field.

I even talked with the owner of one of the said machine that had is replace after a couple month of use, he got a bran new machine NOT a refurbished model nor a used one.

I really think I did all I could in the negotiation process and the only dilemma I got wright now is how to pay for the thing ...

Again, Thanks allot guys
Regards
M@CK

P.S. gig0 thanks for the advice !

Good Job the service agreements are quite fair IMO.

Often as you point out the method of aquisition is often the deciding factor

Good luck and let us know what happens

 

[X33]

you should go with leasing, if the lease is directly with the manufacturer.

if it's with a 3rd party finance intermediary, there are usually some sad stories.

 

[PineyBob]

you should go with leasing, if the lease is directly with the manufacturer.

if it's with a 3rd party finance intermediary, there are usually some sad stories.

I hate to be the bearer of bad news. With few exceptions ALL copier leases are 3rd party. IIRC

Ricoh - De Lage Landen
IKON - GE Capital
Canon Business Solutions - Canon Financial Services which also provides leases to independent Canon Dealers, CFS is a wholly owned subsidiary of Canon, USA but IT IS NOT a direct lease from the Manufacturer, in fact CFS leases have some of the most onerous terms and conditions in the industry.
Konica-Minolta - Is De Lage Landen last time I looked.
Xerox - Xerox through it's Xerox Credit Corp used to hold their own paper but IIRC they sold a big chunk of their portfolio to GE.

Bottom line is you have to READ THE LEASE and make your decision.

 

[X33]

in the US, Xerox Corporation does financing through Xerox Capital Services.

technically, they are different companies, but everything is managed under the same Xerox umbrella. the good part is that sales, service, marketing, billing, invoicing, they all talk to each other inside Xerox. if you have a service issue, you won't have somebody from billing asking you to pay anyway.

in Canada, I don't know.

 

[smatros]

I believe when you compare the machine performance, price, cost of consumables or clicks and your needs / desires and plans for development, one will come better then another. If not, choose the one that you prefer for Rip or design or personal feeling ...