Automatic Lease Rollovers – The Silent $1,000 Thief
You signed on for a five-year copier lease, and you’re only thirty days away from the end of its term. This copier has caused you nothing but grief, and you’re thrilled at the idea of trading up for a newer, better, and more reliable model.
Out of nowhere, you get a letter in the mail; it’s a bill from your leasing company for a three-month extension on your lease. You call the leasing company to try to fix the situation, but the agents can’t help you. The realization hits you in the face that you are stuck with this battered and broken copier for three more months.
How Did You Get Three More Months Tacked Onto Your Lease?
In nearly every copier lease, you’ll find a provision that lets the leasing company bill you for another three months. This strategy is dirty, but leasing companies do this all the time to unsuspecting customers.
This lease extension will cost you between $600 and $1,000. Talking to the copier companies won’t do anything for you unless they are carrying the lease themselves.
How Do You Stop the Leasing Company From Extending Your Lease?
To stop the leasing company from sticking you with a lease extension, you need to mail them a written notice of your intent to return the copier at the end of the lease.
You have to mail this letter in a specific timeframe, which is between 45 and 90 days. If you send the letter sooner than 90 days out, or later than 45 days out, the leasing company will ignore the letter and bill you for a three-month lease extension.
Look in your contract for the date your lease is about to expire. Place a reminder on your phone for that date. Have that reminder pop up that day and tell you to mail that letter of intent to the leasing company.
To make the process run smoother, write the letter out ahead of time. Once the leasing company receives the message, they can send you instructions on what you’ll need to do to mail the copier back to their warehouse.
Now you know how to prevent your leasing company from stealing up to $1,000 from your company’s account. Follow this relatively painless process, and keep your money so you can invest it in a shiny new copier.