Whether you own a small startup or you work for a large company, there can be significant advantages in leasing equipment rather than purchasing it. With leased equipment, it’s often easier to upgrade and stay current with new technologies, as your lease only lasts for a specific period of time and you don’t have to worry about disposing of the property. But there are some specific questions you want to ask before you enter into an equipment lease.
Make certain the company you plan to work with understands your business and your needs, and can provide the equipment you need. You also want some confidence that the leasing company will be aware as new technologies emerge that fit your needs.
As a general rule, equipment companies tend to tell prospective customers that terms are not negotiable — don’t accept that. Terms are always negotiable. You may need to go elsewhere to get the terms you want, or you may choose not to negotiate for other reasons, but there’s nothing wrong with offering a counter-proposal.
Generally, with a “buyout” lease, you have the option of purchasing the equipment at fair market value or for $1.00, at the end of the lease. This can be a real benefit if the technology is unlikely to change and the equipment is not extremely portable.
What Happens If Something Malfunctions or Breaks?
Typically, under UCC-2A, the leasing company will disclaim all warranties and you will need to pursue the vendor or manufacturer to service the equipment and/or address any alleged defects.
For professional and knowledgeable legal counsel with a personal approach, contact our office by e-mail or call us at 856-424-6400. We are available evenings and weekends upon request. We take all major credit cards. Home and hospital visits can be arranged for personal injury victims.
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