How to Avoid an Auto Renewal

colorqube9301End of Release: How to Avoid Auto-Renewal

Your copier lease approaches the end of its term, and you want to avoid the auto-renewal clause of 60 day intervals. What do you do? Every lease outlines your responsibilities after the lease approaches expiration. However, understand that most lease companies will automatically renew your lease for another three to five years if you do not take action. Even if you do not look at it as a big deal, consider how fast technology becomes outdated and replaced. In addition, older technology becomes more expensive to maintain and service contract prices increase with outdated technology because they run into more problems.Lease Termination: Follow the Instructions

Copier leases may require you to give a written notice of lease termination 90 days in advance to avoid auto-renewal. The majority of companies will cancel the lease when the letter of intent has been received. However, do not trust that email will accomplish this task. Mailing it will give you a signature to keep for your records. Less honest companies have renewed leases because the lessee gave no proof of delivery. If you do not submit a lease termination letter, it will automatically be renewed, and you could be stuck with outdated equipment.

The majority of leasing companies include a clause that states the lessee must return the equipment at their own expense unless they renew the lease or buy the equipment. Always be certain that you factored that cost into your new lease. To avoid auto-renewal, ask questions before you sign the lease, and always maintain a copy of your signed lease. Some leasing companies do not want you to have this information because they can automatically renew your lease.