Copier Lease Rates: How To Tell If You Are Overpaying

Copier lease rates are influenced by several factors, including credit, time in business, and lease term.

With a few simple checks, you can tell if your payment is in a healthy range for your company.

Why copier lease rates are confusing

If you have ever looked at a copier lease and thought, “I have no idea where this payment came from,” you are not alone. Most lease agreements use a small number called a rate factor to calculate your monthly payment, and it is rarely explained clearly.

The rate factor usually includes:

• The finance company’s base rate

• Adjustments for term (36, 48, 60 months, etc.)

• Your credit profile and time in business

• The type and cost of the equipment

 

 

What is a copier lease rate factor?

On a typical 60-month Fair Market Value (FMV) lease, your payment is calculated like this:

Equipment price × lease rate factor = monthly payment

Example:

• Equipment cost: $15,000

• Lease rate factor: 0.023

• Monthly payment: $15,000 × 0.023 = $345 per month

If your business has stronger credit and a stable history, you might qualify for a lower factor—such as 0.02—which would put the same device closer to $300 per month. Over five years, that difference can add up to several thousand dollars.

This is why two companies can lease similar copiers and pay different amounts. Their underlying risk profiles and lease terms are simply different.

Why some copier lease rates are higher than you expect

A higher payment does not automatically mean something is wrong. Common reasons your rate may be higher include:

• New business with limited time in operation

• Weaker credit or past delinquencies

• Shorter lease term (paying the equipment off faster)

• More advanced, higher-cost equipment

• Additional services wrapped into the payment

In some cases, there may also be added dealer margin in the rate factor. That is not automatically a problem, but you should understand it before you sign.

Dollar buyout vs. Fair Market Value (FMV)

Most copier leases fall into one of two structures:

• Fair Market Value (FMV)

  • Lower monthly payment

  • You return the copier or buy it at market value at the end

• $1 buyout

  • Higher monthly payment

  • You own the copier for $1 at the end of the term

Many businesses choose FMV because print volumes and technology needs change. By the time a $1 buyout ends, some teams are already ready for a different device. The “right” option depends on how long you plan to keep the equipment and how predictable your print needs are.

How to tell if your copier lease rate is fair

Before you sign, ask your provider to walk you through:

1. The equipment price

   • What is the sale price of the device before financing or service?

2. The lease term and rate factor

   • What rate factor is being used, and how did they arrive at it?

   • Are credit and time in business affecting the rate?

3. Total cost over the full term

   • How much will you pay in total for the equipment over the entire lease?

4. What happens at the end of the lease

   • Do you return, extend, or buy the copier—and what does each option cost?

If you understand these points and they match your expectations, you are likely in a reasonable range for your situation.

How Novatech approaches copier lease pricing

Novatech has been helping businesses with document technology for more than 30 years. We have worked with thousands of leases across many industries and risk profiles.

Our approach:

• Explain the equipment cost in plain language

• Walk through the lease rate and term, including how your business profile affects it

• Show you the total cost over the life of the lease

• Align the structure with your cash flow and risk tolerance

If you want a second opinion on a quote, Novatech can review your proposal and clearly show you how the numbers work so you can decide with confidence.

Next step

If you are unsure whether your copier payment fits your business profile, share your lease proposal or current agreement with Novatech. We will help you understand your options and see whether there is room to improve your costs or terms.