Leasing office equipment can help a business spread the cost of a printer or photocopier rather than paying for the equipment upfront. However, the headline monthly payment is only one part of the agreement. Use this checklist before signing a lease, renewing an existing contract or accepting an equipment upgrade. Ask for important answers in writing and obtain professional advice where needed.
Do not assume the lease and service agreement end on the same date
A copier arrangement may involve more than one agreement. The equipment lease may be provided by a finance company, while maintenance, toner supply and cost-per-page charges may be covered by a separate service agreement. These agreements may have different end dates and different notice requirements.
- Ask for the start date and end date of the equipment lease
- Ask for the start date and end date of the service agreement
- Confirm the name of each company involved
- Check the notice period for each agreement
- Ask whether ending one agreement automatically ends the other
Do not ignore automatic renewal clauses
Some agreements may renew automatically unless written notice is provided within a specific window. Check the renewal wording before signing and save a copy of the final agreement.
- Does the equipment lease renew automatically?
- Does the service agreement renew automatically?
- Is any renewal monthly, yearly or for another fixed term?
- Will a renewal reminder be sent?
- What happens if the notice deadline is missed?
Do not miss the written notice deadline
The required notice period may be different for the lease and the service agreement. The paperwork may also specify an email address, postal address or delivery method for cancellation notices.
- Confirm the exact number of days notice required
- Ask where the notice must be sent
- Check whether notice by email is accepted
- Ask whether proof of delivery is required
- Add the deadline to the business calendar immediately
- Set a second reminder several weeks before the deadline
Do not compare quotes using the monthly payment alone
A low monthly figure does not show the full cost of the agreement. Calculate the amount payable over the entire term and ask each supplier to provide a written breakdown.
Estimated total contract cost = monthly equipment payments + service charges + estimated mono printing costs + estimated colour printing costs + installation charges + administration fees + end-of-contract charges.
| Cost to check | Amount |
|---|---|
| Monthly equipment payment | £ |
| Contract length in months | |
| Total equipment payments | £ |
| Monthly or quarterly service charge | £ |
| Estimated mono print charges | £ |
| Estimated colour print charges | £ |
| Installation or delivery fee | £ |
| Administration fees | £ |
| End-of-contract costs | £ |
| Estimated total cost | £ |
Do not overlook mono and colour cost-per-page charges
The equipment payment may not be the largest cost over the lifetime of the agreement. Many service contracts charge separately for each printed page, and mono and colour pages may have different rates.
- What is the mono cost per page?
- What is the colour cost per page?
- Is there a minimum monthly print volume?
- Are unused pages carried forward?
- Are scans included or charged separately?
- Are toner, parts and engineer visits included?
- Can the page rates increase during the contract?
- How are meter readings collected?
Do not accept unclear exit charges
A business may need to leave an agreement early because it relocates, closes an office, reduces staff numbers or changes its equipment requirements. Ask for a written explanation of the exit process before signing.
- Early termination charges
- Remaining lease-payment obligations
- Service-agreement cancellation charges
- Administration fees
- Equipment return charges
- Charges for damage or missing accessories
- What happens if the business relocates
- What happens if the business closes
Do not forget collection and deinstallation costs
At the end of an agreement, the equipment may need to be disconnected, removed safely and returned. Larger photocopiers may require more planning than a desktop printer.
- Who owns the equipment at the end of the agreement?
- Does the equipment need to be returned?
- Who arranges collection?
- Is collection included in the price?
- Are there separate deinstallation fees?
- Are there extra charges for stairs, restricted access or specialist removal?
- Is there a deadline for returning the equipment?
- Is secure data wiping included?
Do not agree to an upgrade without checking whether it starts a fresh agreement
An equipment upgrade may sound straightforward, but accepting replacement equipment may start a new agreement, extend an existing commitment or change the service period. Ask for a written comparison before agreeing.
- Does the upgrade start a new lease?
- Does it extend the current lease term?
- Are remaining payments from the old agreement carried into the new one?
- Does the service agreement restart?
- Will the mono or colour page rates change?
- Are there installation, collection or administration fees?
- What is the new total cost over the full agreement term?
| Question | Existing agreement | Proposed upgrade |
|---|---|---|
| Remaining contract term | ||
| New contract term | ||
| Monthly equipment payment | £ | £ |
| Mono cost per page | ||
| Colour cost per page | ||
| Service charges | £ | £ |
| Estimated total cost | £ | £ |
Final checklist before you sign
| Check | Confirmed |
|---|---|
| Do the lease and service agreement end on the same date? | ☐ |
| Have I checked whether either agreement renews automatically? | ☐ |
| Do I know the written notice deadline? | ☐ |
| Have I saved the cancellation details and contact address? | ☐ |
| Have I calculated the full cost over the entire term? | ☐ |
| Do I know the mono and colour cost-per-page rates? | ☐ |
| Have I checked minimum-volume charges? | ☐ |
| Do I understand the early exit costs? | ☐ |
| Have I checked collection and deinstallation fees? | ☐ |
| Have I checked who owns the equipment at the end? | ☐ |
| Do I know whether an upgrade would start a new agreement? | ☐ |
| Have I received the important answers in writing? | ☐ |
Compare the full agreement, not just the headline price
The right printer or photocopier agreement should suit the workplace, expected usage and budget. Compare equipment cost, contract length, servicing, page rates, renewal terms, exit charges and end-of-contract arrangements together.