USED, OFF-LEASE COPIERS & MULTI-FUNCTION PRINTERS IN NASSAU, QUEENS, COUNTY, LONG ISLAND, LI, NY
Ricoh Savin Lanier Toshiba Kyocera Copystar HP Lexmark
28 year old office equipment SERVICING COMPANY sells and rents very late-model, low-meter copiers and multi-function printers for more that 55% LESS than the best discounted price the machine would sell for when new!
They say that knowledge is power. So, the sole purpose of this web page is to inform you as to how we can acquire used office equipment in like-new condition and why the financial mechanics of the leasing industry allows us to purchase and resell it to you so inexpensively. While this may appear more like an essay than an advertisement, it may be well worth your time to read it through because you can be sure that no salesman for any office machine dealership will ever tell you what we’re about to reveal to you!
If you frequently try to squeeze as much life as possible from your office machines then it must be a little disconcerting to know that there are many companies and institutions that routinely replace (rotate) their office equipment every 36-39 months without any concern as to whether they actually “got their monies worth” out of the last machine(s) that they just returned! These organizations enjoy the luxury of simply passing on “the cost of doing business” to their customers and constituents without having to justify their overhead expenditures to anyone. They are the major banks, insurance companies, major manufacturers, media giants, universities, hospital systems, government institutions, etc. They by-pass the local retail dealers and contract directly with the equipment manufacturers as “major or national accounts” and take in fleets of equipment on 36-39 month leases. Inevitably, a good 20% of these units are returned at lease end hardly used! It’s called corporate and institutional waste. Additionally, a lot of small businesses that should be concerned about their overhead are often persuaded by dealer salespeople into taking short-term leases on high-volume equipment that their business use can’t justify.
Here’s Where It Gets Interesting…
(the financial mechanics of leasing)
While automobiles are amortized over eight years, office equipment is amortized over only five years and the financing works on an accelerated curve. Or, as they say, the lease is “loaded on the front end.” At the end of 36-39 months, the lessee has paid approximately 76.5%-80% of the actual value of the equipment, plus the finance charge and not 60%-70%, as you may have thought. “Actual value” is defined as the dollar amount that you would have paid to the vendor for the equipment had they not sold it to a leasing company on your behalf and at the same price. At the end of the lease, when you return the equipment, the leasing companies recover the approx. 20%-23.5% of the “residual value” left on the unit from companies like ours.
Here’s Where It Gets Even More Interesting!…
(what actually makes this whole thing work!)
Unlike auto leases, office equipment leasing companies don’t care how much mileage you put on the equipment. You’ll pay the same 76.5%-80% of the actual value of the unit whether you return the machine with under 20,000 copies on it or over 500,000 copies and leasing companies will try to recover the same 20%-23.5% of the residual value of the unit, regardless of the meter! You may disagree with this if you were ever involved in a lease that included “free service and supplies” but actually limited you to the number of copies you could make over the course of the lease. But that limitation is imposed by the dealer who must provide the so called “free service and supplies” and not the leasing company.
We purchase only the lowest meter lease returns!
Let’s Spell It Out…
An equipment dealership sells a copier with a list price of $16,000 at a competitive discounted price of (say) $10,000, not to the customer but to a financial institution, (a leasing company,) on the customer’s behalf. The leasing company then bills the customer on a monthly basis for thirty-six months. At the end of the three years the customer has paid $7650 of the original $10,000 value of that equipment plus the finance charge and then returns it to the leasing company’s receiving agent who recovers the residual value of the machine by selling it to us for $2350.
After a thorough cleaning, adjustment and replacement of certain parts, we resell the equipment to you for $4500, which is 55% less than the competitive discounted price of $10,000 when sold as new. But here’s the great part. This particular copier, when new, has a conservative useful life* of 750,000 copies over a 5 year period and we resell it to you with fewer than 100,000 original copies on it. Had this machine originally been placed into service in an environment suited to its abilities, then in order to be cost effective, it should have come off of a three-year lease with between 360,000-450,000 copies on it. However, it-is-not-at-all-unusual for us to acquire these machines with as little as 90,000 original copies or less on them. This means that the machine still has 88% or more of its conservative useful life* remaining when you buy it and you’re paying for less than 50% of its original discounted price. Pretty good…hey? In contrast, the original lessee used 12% or less of the machine’s useful life but paid for 75%-78% of its original value, plus the finance charge.
You get to capitalize on the excesses of large companies!
Please don’t be put off by our figures. $10,000 was just a convenient, round number to use. We also sell very low-meter copiers and multi-function printers whose discounted price, when new, is $3000.00, for less than half that price.
*“Conservative useful life” is our definition (as technicians and not salesmen) as to how much copy or print volume the equipment should be able to comfortably do over a five (5) year period when sold as new.
Two Very Specific Examples:
In August, 2015 we sold a 50 copy per-minute Ricoh MP 5001 to a C.P.A. The current model being sold at that time by Ricoh dealers was the MP 5002. Same machine, screw for screw, except that the manufacturer bumped up the model number so that they can say that their line-up is current. The previous model was the MP 5000. Get the idea? We obtained the machine from a leasing company return agent. The serial number on the machine indicated that it was manufactured on January 2012 in the Georgia, USA assembly plant. It came with four five-hundred sheet paper supply drawers, print, color scan and fax with a SR 3020 booklet finisher and three hole punch option. While we were in the processes of testing it the meter turned to 60,000 copies and that’s what we delivered it with. Delivered and installed, the customer paid us $3600.00. Now, had this customer walked into any Ricoh dealership with a suitcase loaded with cash, the lowest price they would have paid for the MP 5002 is somewhere between $7200-$7500. That price represents 20%-25% above dealer cost but doesn’t include what it would cost the dealer to prep and deliver the machine.