Sorry if this has been covered somewhere else but I am trying to finalize the lease agreement on a Canon C300 and thought the knowledge of users on this forum would be the most pertinent and direct. So if anyone has done the lease agreement though Canon Financial Services, their advice & answers would be GREATLY appreciated as I have to sign this by Thursday. Also, some of this may be rather basic for lease agreements but I am young and this is my first lease agreement so if it is obvious, I apologize, but would still love an honest and straightforward answer.
I am signing up for the 24 months 0% financing program that Canon is offering on their Cinema EOS cameras and some Cine Lenses. My monthly payments are calculated at roughly $600 for 24 months. Although it is 0% interest for 24 months the agreement says...
"A late payment fee of the greater of 10% of the late amount or $10 will be due if a Payment is late."
- Does this mean that if I am late on the monthly payment I will effectively have to pay a $60 fine each time?
"This is a net lease. Payments shall be made without set-off or deduction, even if the Equipment malfunctions."
- Does this mean that even if the C300 malfunctions, I am still on the hook for amount owed? If so, is there a separate warranty on the C300 directly through Canon?
"CUSTOMER SHALL NOT ASSIGN OR PLEDGE THIS AGREEMENT, NOR SHALL CUSTOMER SUBLET OR LEND ANY ITEM OF EQUIPMENT."
I, like many of you, am planning to work with this equipment but also to rent it out to jobs that I am working on and occasionally to DP's who need it. Is this saying that I am not allowed to do this?
"7. PURCHASE OPTION: (A) END OF TERM PURCHASE OPTION. At the end of any term, Customer shall give CFS 60 days prior irrevocable written notice (unless the Purchase Option is $1.00) that it will purchase all the Equipment at the purchase option price indicated herein plus any Costs. ( PRIOR TO MATURITY PURCHASE. Customer may, at any time, upon 60 days irrevocable written notice purchase all the Equipment at a price equal to the sum of all remaining Payments plus the Fair Market Value plus Costs. "Fair Market Value" shall be CFS's retail price when Customer purchases the Equipment. Equipment purchases shall not be permitted if a default is continuing. Equipment purchases shall be "AS-IS WHERE-IS" without warranty, except for title."
- The end of term purchase is $1. If I pay it off before then it says that I have to also pay "Fair Market Value" and "Costs". Does this mean that I could end up paying more than the original price if I buy it outright? What exactly are these terms and how are they applicable to the lease?
If anyone has done this program, please let me know how your experiences have been. Also, although I am highly confident in making the monthly payments, if anyone has any experience in what happens if I miss a payment or if I am late that would be greatly appreciated.
Thanks for any and all help, and I look forward to joining the ongoing discussions within this forum!