What can I expect at the end of the lease term?
Different vendors have different lease expiration and removal processes. It is important to become familiar with your vendor’s policies concerning the duration and the end of the lease term. It can cost anywhere from $400-$2,000 to return a machine back to the vendor via shipping and handling. The customer is responsible for the crating, repackaging, and the return fee.
Additionally, the customer has to declare the intention of returning the machine before the lease term is over. In many cases, if the customer fails to notify the vendor before the lease term is up, the lease may automatically renew or go on a month to month basis. It is important to distinguish the nuances of the lease term.
How does the insurance work?
The industry average is 1/4% the value of the asset per month. You can ask if it is necessary to take the vendor’s insurance policy or if you find one on your own.
Does the lease increase the property tax?
This is different from state to state, but you can ask your vendor about the rates. The base monthly price can be inflated if the property tax is extra, but most times it is already included.