5 Things to Know Before Signing a Copier Lease

The world is moving toward creating a paperless society. Almost everything today is digitalized, but sometimes you still deal with hard copies, and those need to get uploaded to the server one way or another. Even if your office is printing less regularly, you may still need a good-quality copier.

If you decide on leasing a copier rather than buying one, we’ve put together a guide for what to know before signing a copier lease. We will walk you through typical copier leasing considerations, including key terms and conditions, the cost structure, copier capabilities and specifications, lease duration and ending lease agreements.

Understanding Key Terms in Copier Leases

Reading through leasing paperwork can be overwhelming when trying to make informed decisions. This list will help you understand the key terms and conditions you’ll find in most copier lease agreements.

• Automatic renewal: Your lease automatically renews unless you give instruction to terminate or renegotiate it.
• End-of-lease options: Depending on the type of lease, you can extend it or return or buy the copier at the end.
• Excess usage fees: Some leases come with limitations, such as print volume, that introduce costs above the monthly fees.
• Lease agreement: This legal document contains all the terms and conditions of your copier lease.
• Lease period: This is how long you’ll be leasing the copier.
• Maintenance agreement: Some leases include repairs, maintenance and replacement of copier parts during the lease period.
• Monthly payment: This is what you’ll pay monthly for leasing the copier.
• Termination clause: This outlines the penalties or fees you’ll pay if you end the lease early.

Evaluating the Cost Structure of Copier Leases

While evaluating the cost structure of copier leases, it’s vital to ask for a detailed breakdown of all potential expenses. Here are all the costs involved in leasing copiers:

• Monthly payments: Fixed monthly lease payments include the cost of the copier (plus interest), which is divided over the lease period.
• Installation: Some lease companies may charge hourly for installing print drivers, scan locations and scan-to-email settings.
• Upfront costs: Initial down payments or security deposits can vary depending on the company and lease terms.
• Service and maintenance: These agreements can increase your monthly payments but will ensure your equipment remains in top working condition.
• Excess usage fees: Unless your lease provides for excess copies every month, you’ll have to include these additional fees occasionally.
• Supplies: Toners and other copier and printer supplies may be included in the monthly payments depending on the lease agreement.
• Insurance: Depending on your business insurance, adding insurance to your lease agreement will protect your copier from accidents, theft and unexpected damages.

Copier Capabilities and Technical Specifications

There is much to know about the capabilities and technical specifications of copiers and printers, all of which can affect your monthly lease payments. Below are features to look for that will allow you to choose the right copier for your office.

• Model: You may prefer an older model with limited functionality or a future-proof new model.
• Type: Color copiers cost more than black and white ones but are necessary when you work in the creative industry.
• Condition: Reconditioned and used copiers are more cost-effective than brand-new machines but carry a higher risk of breakdown.
• Technical specs: You’ll need to decide on the copier’s technical specs, such as speed and storage space, depending on your company’s type and size.
• Print volume: Standard copiers with lower printing volumes are more cost-effective than heavy-duty high-volume ones.
• Add-ons: Additional features like wireless connections, different paper size support and duplex printing can be nice-to-haves based on your office’s requirements.
• Security: If your office deals with sensitive information, a copier with security features may be necessary.

Lease Duration and Extension Clauses

A copier lease can last up to 60 months based on the agreement terms. Usually, a longer lease will have lower monthly payments but could cost you more at the end of the lease period. However, you also wouldn’t want to send a perfectly working machine back with a too-short lease period. If your organization uses copiers and printers frequently, you may want to consider a longer lease period.

Since the lease period often extends over a few years, it can be easy to miss the automatic renewal deadline. Give your lease company a heads-up a few months in advance to choose your end-of-lease option — if you forget, your lease agreement automatically renews.

How to Get out of a Copier Lease

Sometimes, life happens or your business needs change, so your current lease agreement no longer fulfills your requirements. If you want to cut loose before the end of the lease period, it’s best to inform the leasing company that you want to terminate your agreement or cancel the automatic renewal clause far in advance.

There are a few different ways to get out of a copier lease early:

• Review the termination clause: Look through your lease agreement for details on cancellation and what fees are involved with early termination.
• Assess other clauses in the agreement: Check if the leasing company met their performance guarantees — a contract breach on their side could allow you the freedom to terminate.
• Pay off the lease: If you want to lower the penalties, you can pay off the rest of the money you owe but may be left with the printer.
• Look for an assumption clause: With an assumption clause, another company can take over your lease’s remaining terms.
• Add a copier lease buyout: This allows other dealers to take care of the lease’s remaining balance in return for your business.

Frequently Asked Questions (FAQs) About Copier Lease Agreements

Whether you’re educating yourself on copier lease agreements or in the market for a new copier, these quick answers to some of the most common queries will give you the insight you need.

How does a copier lease work?

Instead of buying a copier, you can rent it from a copier leasing company. You pay a monthly fee over a period of time to use it.

What are the benefits of a copier lease?

There are many benefits to leasing a copier, including lower upfront costs, access to the latest technology and limited expenses on maintenance and repairs. Furthermore, you can deduct tax from monthly lease payments.

How do I get out of a photocopier lease?

Start with reviewing your lease agreement to see what’s included in the termination clause. You’ll then need to inform your lease company about your wanting to terminate and pay any penalties involved.

What are the different types of copier leases?

There are two leasing methods. A fair market value (FMV) lease comes with lower monthly payments but no option to own the printer at the end. A capital lease (or $1 buyout lease) is the lease-to-buy option.

Request a Copier Leasing Quote From Doceo

No matter the size of your organization, we have copier and printer solutions that will meet your business needs. Get in touch with a Doceo expert today by requesting a quote and feel confident about your office equipment.