Before signing a lease for a multifunction office printer (copy/print/scan/fax device), confirm the details in these areas. Many printer leases look inexpensive upfront but become costly because of service terms, click charges, or auto-renewal clauses.

1. Lease Structure and Total Cost

Confirm:

• Monthly payment amount

• Whether payments are fixed or can increase

• Total cost over the full term

• Whether taxes, insurance, freight, installation, and setup are extra

Ask:

• “What is the total cost if I keep this lease for the entire term?”

• “Are there any upfront fees or end-of-lease fees?”

A low monthly payment can hide a very high total cost.

2. Ownership at End of Lease

This is one of the most important items.

Determine whether the lease is:

• Fair Market Value (FMV) lease

  • Lower monthly cost

  • You usually return the machine or buy it at market value later

• $1 Buyout / Capital lease

  • Higher monthly payment

  • You own the machine for a nominal amount at the end

Confirm:

• Exact buyout amount

• Whether ownership transfers automatically

• What “fair market value” means and who determines it

Avoid vague wording.

3. Automatic Renewal Clauses

Many printer leases auto-renew unless cancelled correctly.

Confirm:

• Whether the lease renews automatically

• Required notice period to cancel (sometimes 90–180 days)

• How cancellation must be submitted

• Whether verbal notice counts

Ask for:

• The cancellation clause highlighted in writing

Missing the notice window can lock you into another year.

4. Service and Maintenance Agreement

Printer leases are often bundled with maintenance contracts.

Confirm:

• What maintenance includes

• Response times for repairs

• Whether loaner machines are provided

• Who supplies toner

• Whether parts and labor are included

• Any exclusions

Important:

Some contracts separate:

• Equipment lease

• Service agreement

• Supplies agreement

Even if one ends, the others may continue.

5. Cost Per Page (“Click Charges”)

Very important for multifunction printers.

Confirm:

• Black-and-white cost per page

• Color cost per page

• Minimum monthly volume commitments

• Overage charges

• What counts as a billable page

• Whether scans are billed

Ask:

• “How are color pages counted?”

• “Do partial-color pages count as full-color clicks?”

Color click charges can become extremely expensive.

6. Usage Volume Assumptions

The recommended machine should match your actual print volume.

Confirm:

• Recommended monthly duty cycle

• What happens if you exceed it

• Whether the machine slows down or voids coverage under heavy use

Over- or under-sizing the machine can cost you significantly.

7. Early Termination Penalties

Many leases are very difficult to exit.

Confirm:

• Cost to terminate early

• Whether you owe all remaining payments

• Whether there are additional penalties

• Transfer/sublease options if your business changes

Important:

Some finance companies require full payout even if the machine fails or becomes obsolete.

8. Equipment Upgrade Terms

Technology changes quickly.

Confirm:

• Whether upgrades are allowed during the lease

• Fees associated with upgrades

• Whether remaining lease balance gets rolled into a new lease

Some “upgrades” simply restart the lease clock.

9. Warranty and Equipment Condition

Confirm:

• Whether the device is new, refurbished, or used

• Manufacturer warranty length

• What happens after warranty expiration

• Responsibility for defective equipment

10. Security and Data Protection

Modern multifunction printers store data internally.

Confirm:

• Hard drive encryption

• Secure print release features

• User authentication options

• Data wiping at lease end

• HIPAA/PIPEDA/GDPR compliance if applicable

Especially important for legal, medical, accounting, or HR environments.

11. Insurance and Liability Requirements

Confirm:

• Whether you must insure the equipment

• Who is responsible for damage, theft, or power surges

• Whether your business insurance already covers it

12. Return Conditions at End of Lease

Confirm:

• Who pays shipping/removal costs

• Packaging requirements

• Condition requirements

• Charges for missing accessories or wear and tear

End-of-lease return fees can be surprisingly high.

13. Finance Company vs. Vendor

Often the leasing company is separate from the printer dealer.

Confirm:

• Who handles billing

• Who handles service

• Who owns the contract

• Whether the lease can be sold to another finance company

This affects support quality and dispute resolution.

14. Hidden Fees to Look For

Review carefully for:

• Administrative fees

• Annual increases

• Toner shipping fees

• Meter reporting penalties

• Late fees

• Mandatory consumables purchases

• Non-return penalties

• Software licensing fees

15. Get Everything in Writing

Do not rely on sales promises.

Ensure all verbal commitments appear in:

• The lease agreement

• Service agreement

• Addendums

• Email confirmations

If it is not written down, it may not be enforceable.

Practical Questions to Ask Before Signing

1. What is the total cost over the full term?

2. What exactly happens at the end of the lease?

3. Can the lease auto-renew?

4. What are the click charges?

5. What is included in service?

6. What happens if the machine breaks repeatedly?

7. What are the cancellation penalties?

8. Can I upgrade later without restarting the lease?

9. Is the machine new or refurbished?

10. Are toner and supplies included?

Recommendation

Before signing:

• Request a complete copy of:

  • Lease agreement

  • Maintenance agreement

  • Pricing schedule

  • End-of-term policy

• Compare at least 2–3 vendors

• Calculate:

  • Total lease cost

  • Estimated print volume costs

  • Buyout cost

• Have a lawyer or experienced office equipment consultant review the contract if the commitment is large.

Printer leases are one of the most commonly misunderstood business equipment contracts because the financing terms and service terms are often split across multiple documents.

Arguably the most THE MOST IMPORTANT thing to do is to compare the TOTAL SPEND of one agreement versus another and not just the monthly payment or advertised cost per copy.

If you would like us to take a second look and provide some insight into the financial nuts and bolts of a deal you may be considering, please feel free to reach out. We would be happy to run the numbers and provide an objective comparison at no cost and with no obligation.