Types of copier lease contracts, with real prices
Most copier and printer leases are one of three types: fair market value, $1 buyout, or fixed buyout. All three are non-cancelable. Ours run 36 to 63 months with $0 down and 0% annual escalation.
The 3 contract types, side by side
3 lease types cover almost every copier contract.
The difference is what happens to the machine at the end of your term. You can choose a lower monthly payment with an end price still to be stated, ownership for $1, or a purchase price agreed before you sign.
| Contract type | Monthly payment | End of term | Fits you if |
|---|---|---|---|
| Fair market value (FMV) | Lowest of the three | Return it, renew, or buy at the lessor's stated value | You want a newer machine every few years |
| $1 buyout | Highest of the three | You own the machine for $1 | You plan to keep the machine long after the term |
| Fixed buyout | Between the other two | Buy at a price agreed when you sign | You want ownership with a known end price |
Read the buyout options before choosing. The contract type tells you how the end price is set; it does not let you cancel the term early. For tax questions, ask your accountant how each type is treated for tax.
4 term lengths
4 term lengths: 36, 48, 60 or 63 months.
Longer terms lower the monthly payment but commit you for longer. Choose the length with the full commitment in mind, not only the monthly figure. Our price ranges and included pages are below.
| Machine | Monthly price | Included each month |
|---|---|---|
| Full-size 45ppm colour MFP | $209-$349/mo | 5,000 B&W + 500 colour pages |
| Desktop-class MFP | $89-$149/mo | 2,000 B&W + 200 colour pages |
$0 down payment on every term. We use 0% annual escalation whether you choose 36, 48, 60 or 63 months.
5-10% a year: the escalation clause
5-10% a year is the industry norm for escalation. Ours is 0%.
An escalation clause raises your payment every year of the term. That can change your total cost more than the contract type. Compare the same starting payment over the same term:
Same lease: $209/mo for 60 months.
At 0% escalation: $209.00 x 60 = $12,540.00
At 5% a year:
Year 1: $209.00 x 12 = $2,508.00
Year 2: $219.45 x 12 = $2,633.40
Year 3: $230.42 x 12 = $2,765.04
Year 4: $241.94 x 12 = $2,903.28
Year 5: $254.04 x 12 = $3,048.48
Total: $13,858.20, which is $1,318.20 more than 0%
At 10% a year:
Year 1: $209.00 x 12 = $2,508.00
Year 2: $229.90 x 12 = $2,758.80
Year 3: $252.89 x 12 = $3,034.68
Year 4: $278.18 x 12 = $3,338.16
Year 5: $306.00 x 12 = $3,672.00
Total: $15,311.64, which is $2,771.64 more than 0%
Each year's payment is the prior year's payment raised by the escalation rate, rounded to the cent.
For the detail, read our guide to escalation clauses.
0 early-cancellation options: what non-cancelable means for you
0 early-cancellation options: every lease type is non-cancelable.
Once you sign, you owe the full term whichever type you choose. FMV, $1 buyout and fixed buyout change what happens at the end, not whether you can stop paying before then. That is why the term length and escalation clause matter before you sign.
If you already have an agreement, read about getting out of a copier lease before deciding what to do.
$0.01 and $0.07: pages beyond what's included
$0.01 per extra black-and-white page, $0.07 per extra colour page.
Overage is billed on top of your monthly price on any contract type. Compare your monthly page use with the included allowance: 5,000 B&W + 500 colour pages for the full-size MFP, or 2,000 B&W + 200 colour pages for the desktop-class MFP.
Buying outright instead costs $7,000-$8,000 refurbished or $12,000-$17,000 new; see leasing versus buying for that separate comparison.
6 questions about copier lease contracts
3 contract types, with different end-of-term choices and the same commitment to the signed term.
What are the main types of copier lease contracts?
3 types cover almost every copier or printer lease: fair market value (FMV), $1 buyout and fixed buyout. FMV lets you return, renew or buy at the lessor's stated value. A $1 buyout transfers ownership for $1; a fixed buyout sets the purchase price when you sign. All three are non-cancelable once signed.
Which lease type has the lowest monthly payment?
3 contract types have different monthly payment levels: fair market value (FMV) is the lowest, fixed buyout sits between the other two, and $1 buyout is the highest. FMV fits you if you want a newer machine every few years. At the end, you can return it, renew or buy at the lessor's stated value.
Can I cancel a copier lease early?
0 early-cancellation options apply to these lease types: fair market value, $1 buyout and fixed buyout are all non-cancelable. Once you sign, you owe the full term whichever type you choose. Check the term length and escalation clause before signing, because both affect the payments you are committing to make over the agreement.
What is an escalation clause in a copier lease?
5-10% a year is the industry norm for an escalation clause, which raises your lease payment each year. We use 0% on every term. On the supplied $209/mo example over 60 months, the total is $12,540.00 at 0%, $13,858.20 at 5% or $15,311.64 at 10%. Check this clause before you sign, whatever contract type you choose.
How long are copier lease terms?
4 term lengths are available from us: 36, 48, 60 or 63 months. Longer terms lower the monthly payment but commit you for longer. We have $0 down payment and 0% annual escalation on every term. Full-size 45ppm colour MFPs are $209-$349/mo; desktop-class MFPs are $89-$149/mo. Your contract remains non-cancelable for the term you sign.
Is a $1 buyout lease the same as buying a copier?
$1 buyout means you make lease payments through a non-cancelable term and then own the machine for $1. It is not an outright purchase at the start: you remain committed to the full lease term. Its monthly payment is the highest of the three lease types. Before choosing, ask your accountant how each type is treated for tax.
0% escalation, from the first payment to the last
0 down payment on every term. Check the monthly cost and estimate your payment before you choose a contract length.