Copier Leasing Contracts: Everything They Hope You Won't Read
I signed my first copier lease when I was an office manager at a small accounting firm. I was 26. The sales rep was friendly, the monthly payment seemed reasonable, and I was busy. I signed without reading every clause. Three years later I understood exactly what I had agreed to. And it wasn't what I thought. That experience is why I do what I do now. Copier leasing contracts are genuinely complex documents designed to be signed quickly and understood slowly — preferably after it's too late to change anything. Let me walk you through what to look for before you sign anything. The Lease Type Is the Most Important Thing Nobody Explains There are two fundamental types of equipment leases and the difference between them is significant. Fair Market Value lease — also called an FMV or operating lease. At the end of the lease term you can purchase the equipment at its fair market value, return it, or upgrade to new equipment. Monthly payments are typically lower because you're not paying toward ownership. $1 Buyout lease — also called a capital lease or finance lease. At the end of the term you purchase the equipment for $1. Monthly payments are higher because you're financing the full value of the equipment over the term. Here's what the sales rep won't tell you upfront: for most small businesses, the $1 buyout lease is the better deal if you intend to keep the equipment. The FMV lease often ends up costing more over the full ownership period because the residual purchase price at lease end can be substantial — and you've been paying monthly without building any equity. Ask directly: "What type of lease is this and what are my options at the end of the term?" The Auto-Renewal Clause That Catches Everyone This is the one that got me. Most copier leases include an auto-renewal clause — typically buried in the final pages — that automatically renews the lease for an additional term (often 12 months) if you don't provide written cancellation notice within a specific window before the original term ends. That window is usually 90 to 120 days before lease end. Miss it by a week and you're committed to another year. I've spoken with business owners who tried to return equipment on their lease end date — after 5 years of payments — and were told they owed 12 more monthly payments because they missed the notice window. Set a calendar reminder 150 days before your lease end date. Review your options. Send written notice if you intend to cancel. Keep a copy of everything. Cost Per Copy: Where the Real Money Is Your monthly lease payment is just part of what you'll pay. The cost per copy — the charge for every page printed on the machine — is where leasing companies make significant additional revenue. Standard cost per copy agreements charge separately for:
Black and white pages — typically $0.008 to $0.015 per page Color pages — typically $0.06 to $0.15 per page
You're given a monthly base allowance of copies included in your payment. Every copy above that allowance is billed at your overage rate — which is almost always higher than your base rate. Here's the problem: most businesses have no idea how many copies they actually make per month before signing a lease. The sales rep suggests a number. You agree. And if your actual volume is higher than your allowance — which it frequently is — you pay overage charges every single month for the length of your lease. Get three months of actual print data from your current equipment before committing to any copy allowance. If you don't have that data, start low and negotiate the right to adjust your allowance upward without penalty. Quick Answer: What does a typical small business copier lease actually cost per month? A standard multifunction copier lease for a small business — 20-30 pages per minute, copy/print/scan/fax, color capable — typically runs $150 to $400 per month for the hardware depending on term length and equipment tier. Add your cost per copy charges on top of that. For a business doing 3,000 black and white and 500 color pages per month, expect an additional $50-100 in copy charges. All-in monthly cost for a modest small business setup: $200 to $500 per month. The Service Contract Fine Print Almost all copier leases include or require a service and maintenance agreement. These cover toner, parts, and technician visits — which sounds great until you read what's excluded. Common exclusions:
Damage from improper use or environment Consumables beyond toner (drums, fuser units in some contracts) Cosmetic damage Issues caused by paper quality or loading
More importantly — service contracts are typically separate from the equipment lease and have their own renewal and cancellation terms. I've seen businesses successfully cancel their equipment lease at term end only to discover they're still bound to a service contract for another year. Read both documents. Understand when each one ends and what the cancellation requirements are. The Equipment Return Process Nobody Prepares You For When your lease ends and you return the equipment, the leasing company conducts an inspection. Damage beyond "normal wear and tear" — a term defined entirely by them — results in charges. I've seen businesses returned machines in perfectly functional condition and received damage invoices for scratches, worn rubber feet, and "excessive toner contamination." Document the condition of your equipment with photographs before it leaves your office. Get a receipt confirming the return. What I'd Do Differently If I were negotiating a copier lease today I would insist on: A clear definition of the lease type in plain language at the top of the contract. The auto-renewal notice window highlighted and acknowledged in writing. A specific cost per copy for both black and white and color, confirmed in the contract — not referenced from a separate rate schedule that can be updated. A fixed-price option to purchase at lease end — not fair market value, which is subjective. The name and direct contact for the service department, separate from the sales rep who will be gone six months after you sign. Has anyone dealt with an auto-renewal situation or unexpected end-of-lease charges? It happens constantly and most people don't realize it's coming until it does.