Why Leasing a Copier is Often a Bad Idea

Leasing a copier may seem attractive initially, offering low monthly payments and the promise of easy upgrades. However, many businesses quickly discover that copier leases often come with hidden costs, inflexible terms, and unexpected headaches. Here’s an in-depth look at why leasing might not be the best decision for your business.

The True Cost of Copier Leasing

When leasing a copier, you essentially finance the equipment plus interest. Over a typical lease term (3-5 years), total payments frequently amount to 50-150% more than the copier’s actual market price. Unlike purchasing, at the end of the lease, you don't own anything.

Example Total Cost Comparison (Over 4 Years)

Clearly, leasing can be significantly more expensive over the long run.

Hidden Fees and Added Costs

Leasing contracts often include hidden and unexpected charges that quickly inflate your monthly expenses. Common issues include:

• Mandatory Insurance: Leasing companies typically require insurance on leased copiers, adding monthly fees that aren’t clearly stated upfront.
• Property Tax Charges: Leasing companies often pass on property tax obligations to the lessee, further increasing your costs.
• Late Payment Fees: Even a slightly delayed payment can result in substantial late charges.
• Per-Click Overages: If you exceed monthly usage limits, additional fees for each extra print or copy can become exorbitant.
• Maintenance Minimums: Contracts often require minimum service or supply charges, even during months with minimal usage.

End-of-Lease Complications

The termination of a copier lease frequently results in logistical and financial headaches:

• Return Shipping Costs: You are usually responsible for safely packaging and returning the copier at your expense, which can be costly and cumbersome.
• Letter of Intent (LOI): Most leases require a timely written notice (30-90 days before lease-end) of your intent to return the copier. Failure to comply often triggers an automatic renewal, locking you in for an additional 12 months.
• Auto-Renewal Traps: Automatic renewals can significantly increase total ownership costs, trapping you with outdated equipment and continued monthly payments.

Vendor and Equipment Lock-in

Leasing contracts lock you into both the vendor and the specific equipment for the lease duration. If your copier turns out to be unreliable or the vendor provides poor service, you're stuck until the lease ends, significantly disrupting your business operations.

Alternatives to Leasing

Instead of leasing, consider these alternatives:

• Buying: Often more cost-effective in the long run, with full ownership and no hidden fees.
• Renting: Short-term flexibility without long-term financial commitments.
• Managed Print Services (MPS): A cost-effective solution offering predictable expenses, service, and supplies bundled into a straightforward contract.

For more details:

• Buying vs. Leasing a Copier: Detailed Comparison
• Understanding Managed Print Services (MPS)

Copier Lease Headache Checklist

Avoiding common leasing pitfalls:

• Carefully review and understand the fine print for hidden costs.
• Confirm who pays for insurance and property taxes.
• Clarify overage rates and minimum monthly usage requirements.
• Clearly understand your obligations at lease end (return shipping, LOI).
• Set calendar reminders well ahead of time for lease renewal and cancellation deadlines.

Conclusion

Leasing a copier can quickly become more trouble and expense than anticipated. Understanding the hidden costs, inflexible terms, and potential vendor lock-in issues is essential. Carefully explore alternatives and ensure you choose the best fit for your business.

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