While digitization has done wonders to reduce the paper footprint of the modern office, companies still depend on printing and scanning vital documentation. Whether you’re printing contracts, scanning invoices, or copying internal documents, a reliable copier is one of those pieces of office equipment that businesses rarely think about until it’s gone. But if you’re in the market for a new copier, how do you determine the best business copier lease terms? Read on to learn how to spot a good deal or narrow down your search.

Leasing vs. Buying a Business Copier

Ultimately, the decision to sign a business copier lease comes down to balancing your initial cash flow flexibility against long-term cost efficiency. And the industry verdict seems to be inching on the side of leasing.

That’s according to the Equipment Leasing & Finance Association (ELFA), which reports that more than 8 in 10 U.S. companies (82%, to be exact) used some form of financing when acquiring equipment for their 2024 report. And copiers are among the most commonly leased assets in the office environment.

Why Lease?

The simplest answer is that leasing requires little to no money upfront. Sure, the average office printer might cost only a few hundred bucks, but an industrial machine that can churn out hundreds of pages a minute or a whole fleet of them is another level of productivity. And for some businesses, these are the facts of life.

So instead of paying potentially thousands of dollars in one go, leasing spreads the cost into predictable monthly payments. Furthermore, lease payments are typically treated as operating expenses, which can also mean they are tax-deductible.

Leasing also provides the flexibility to upgrade equipment at the end of the term or outright purchase the copier at a significant discount (in some cases for a symbolic $1). Most lease agreements also include service and maintenance coverage, removing the headache of repair costs or time wasted searching for a qualified independent technician to service the machine.

Why Buy?

Purchasing a copier (or any other business equipment) means you pay no interest, no lease rate factor markup, and no rolling fees. The machine becomes a business asset on your balance sheet, and you can even sell it or trade it in later to recover some value.

Average Business Copier Lease Terms

Copier lease agreements typically last anywhere from 12 to 60 months, with 36-month and 60-month terms being more common (as that’s usually the cycle for major industry updates and hardware changes).

The 12-24-month leases are considered short-term, offering the flexibility of getting a high-value copier, although at a higher price. These terms are often chosen before you have a firm grasp of your business needs or are expecting to grow rapidly to the point of needing to renegotiate for more devices later.

A 36-month lease offers a balance between manageable monthly payments and a reasonable upgrade window. Three years is generally just under the length of time that most businesses end up keeping their office equipment before replacing it with a newer model. So the lease creates a natural replacement cadence to follow, where a different device is leased for the next term, and you don’t have to track obsolete inventory.

A 60-month lease carries the lowest monthly payment and is most suitable for businesses that don’t need a copier with the latest features. The tradeoff is reduced flexibility since you’re locking into a contract for five years, while technology may outpace your machine before the lease is done.

Notably, the term “leasing” encompasses two different contract structures:

  • A Fair Market Value (FMV) lease means lower monthly payments and allows businesses to return, purchase, or upgrade at the end of the term. It basically treats the copier as a rental. Even here, you’ll likely pay more for the copier than its market price since the provider also takes care of maintenance and sometimes even restocking the consumables (toner and paper).
  • A buyout lease (also called a capital lease) finances the full value of the machine, resulting in higher monthly payments, but you own the copier outright at the end.

How Much Does a Business Copier Lease Truly Cost?

There are a few different things that come into play and can influence the actual value of a business copier lease.

The first is the type of device in question:

  • Entry-level black-and-white copiers for low-volume offices typically lease for less than $100 per month per device.
  • Mid-range multifunction devices suitable for most businesses can cost $150–$350 per month.
  • High-volume or production-grade color copiers can reach prices of $500–$1,000 or more per month.

All of these prices are basically dependent on the actual cost of the model.

After that, dealers will apply a rate factor (a multiplier used to calculate the monthly lease payment as a percentage of the equipment’s total cost) that typically ranges from 0.018 to 0.035. This factor effectively encodes the interest rate into the payment structure. On a $10,000 copier, a rate factor of 0.025 means you’re paying $250 per month, which could amount to $15,000 over 60 months, far exceeding the purchase price.

The actual rate factor that dealers decide on will depend on your business and the perceived risk of your defaulting on payments, including:

  • How long you have been in business
  • Existing credit issues (since you’ll have to go through a financing company)
  • The device’s capabilities or optional accessories
  • Added software and maintenance support throughout the lease term

Notably, there’s usually a “sweet” spot between the 36-month and 60-month term where the total cost of the business copier lease reaches the lowest overall point. However, since this is based on the dealer’s calculations and offers, it’s important to ask for a thorough breakdown of the price and what exactly you get as part of the lease.

Somewhat paradoxically, a 60-month lease is also generally the worst option. Since interest payments are designed to follow a structure similar to any other loan, the interest ends up being a much higher portion of the total cost. Of course, this is explained by the dealer offering maintenance and support for a longer period, as a printer shutting down in the middle of an important operation can cost hundreds of dollars per day.

Additionally, some industry reports suggest that the average time a piece of equipment is used in the printing industry is around 42 months, which is much closer to the 36-month term. That means you end up using a printer that you might want to replace before the end of the lease, which can bring out additional charges or fees.

How to Decide on a Business Copier Lease Provider

A business copier lease ultimately depends on the provider you find. Apart from understanding the exact terms of the lease and choosing the right term length for your actual usage requirements, you need a good provider that can align with your needs and provide the right machine and support for it throughout the term.

And if you’re looking for some of the best equipment to get in Mill Creek, Copiers Etcetera can be your first partner moving forward. So contact Copiers Etcetera for an initial quote and to learn how exactly we can help you upgrade your digital imaging and printing pipelines.