Thinking of Switching Vendors and still under an active lease? Do you think it sounds like a great idea to save money?
Carrie Witham, GreatAmerica Financial Services
Here are a few things to consider that your new vendor may not be telling you:
Most contracts do not allow a cancellation or early pay off. Be sure you understand your terms and conditions of your current contract. You may be causing yourself to be in breach of your contract terms.
Most lease contracts do not allow an early payoff or payments from another source than the contracted lessee. Know what is considered “end of term” before obligating yourself to another contract, you could be making two payments and holding or storing equipment you had not intended to.
You may think you have made all contractual payments and be done. That may not be the case. Property tax and any other miscellaneous charges may still be due. These can accrue late fees if not paid.
Per contract terms you have to give notice within a certain window. If you miss that window you can easily be automatically renewed into an additional term and be obligated to pay for those payments.
Equipment returns are usually stated to be the obligation of the lessee. Make sure this is considered into the cost of the overall contract. This surprise at the end can cost more than you think.