1. Term and total of payments
Multiply the monthly payment by the number of months. That number, not the payment, is what you are committing to. A $195 payment over 60 months is $11,700 — worth knowing when the equipment lists at $9,450.
2. End-of-lease purchase option
The contract will say fair market value, a fixed percentage, or $1. Fair market value is not defined in advance, which means the lessor sets it. If the agreement does not name the buyout type explicitly, ask for it in writing before signing.
3. The notice window
This is the clause that costs businesses the most money. Most leases require written notice 60 to 120 days before the end of the term stating what you intend to do. Miss it and the lease renews automatically, often for a further twelve months at the same payment on equipment you have already paid for. Put the notice date in a calendar the day you sign.
4. Escalation clauses
Some agreements permit the payment to rise by a set percentage each year, commonly three to five percent. On a 60-month term a five percent annual escalator adds meaningfully to the total. If an escalator is present, ask why, and ask for it removed.
5. Return conditions and freight
On a fair market value lease the lessor owns the machine and wants it back in working order. Return freight typically runs $300 to $500 per unit and is your responsibility, as is any repair needed to bring the device back to acceptable condition. Budget for it at the start rather than discovering it at the end.
6. Insurance requirements
You must insure equipment you do not own. If you do not supply a certificate of insurance, most lessors will add their own coverage to your invoice at a rate well above what your existing commercial policy would charge. Send the certificate in the first month.
7. What is bundled and what is not
If service and toner are folded into the lease payment, the contract should still itemize them. A single blended number makes it impossible to compare dealers at renewal or to renegotiate service separately. Ask for the split even if you prefer one invoice.
Before you sign
Ask for the rate factor used to calculate your payment, the buyout type, the notice deadline as an actual date, and confirmation of who pays return freight. Any dealer who will not put those four things in writing is telling you something useful. Our copier leasing terms are published for exactly that reason.
Common questions
Can I negotiate a copier lease?
Yes. The equipment price, the term, the buyout type and whether escalation clauses appear are all negotiable before signing. After signing, almost nothing is.
Who owns the copier during a lease?
The leasing company owns it throughout the term. On a $1 buyout lease ownership transfers to you at the end for a nominal payment; on a fair market value lease it does not unless you purchase the machine.