Your copier lease gives you one major decision point: when and how to buy the equipment. The buyout option you choose (or chose when you signed the lease) determines whether you spend $1 or $4,000+ to own the machine, and it affects your monthly payments throughout the entire lease term.
This guide compares the three buyout structures, shows the real math on each, and helps you decide which option makes the most financial sense for your business.
$1 Buyout Lease
At the end of the lease term, you pay exactly $1 and own the copier outright. This is the simplest buyout structure and the easiest to understand.
Monthly payment impact: $1 buyout leases have higher monthly payments than FMV leases, typically 10% to 20% more. The leasing company builds the full equipment cost into the monthly payments because they know they will not receive meaningful residual value at the end.
Example: A $10,000 copier on a 48-month $1 buyout lease might cost $260/month ($12,480 total). The same copier on an FMV lease might cost $220/month ($10,560 total) plus a $2,000 to $3,500 FMV buyout.
Best for: Businesses that plan to keep the copier for its full useful life (5 to 7+ years), businesses that want predictable total cost with no end-of-lease negotiation, and businesses purchasing specialized equipment they know they will not want to replace.
Fair Market Value (FMV) Buyout Lease
At lease end, you can purchase the copier at its “fair market value” as determined by the leasing company. In practice, FMV is a negotiated number, not an objective appraisal.
Typical FMV buyout range: 10% to 35% of the original equipment cost. A $10,000 copier typically has an FMV buyout of $1,000 to $3,500 after a 36 to 48 month lease.
Monthly payment impact: Lower monthly payments than $1 buyout leases because the leasing company expects to receive residual value at the end (either through your buyout or by reselling the equipment).
The negotiation reality: The first FMV quote from the leasing company is always inflated. Counter at 50% to 60% of their initial figure. They will typically settle at 65% to 80% of the first quote. This negotiation can save you $500 to $1,500 on a standard buyout.
Best for: Businesses that want lower monthly payments and plan to upgrade to new equipment every 3 to 5 years. Also good for businesses that want the flexibility to return the equipment without owing the full depreciated value.
Early Payoff (Mid-Term Buyout)
You do not have to wait until the end of the lease to buy the equipment. Most leasing companies will accept an early payoff, though the cost is typically higher than waiting for the natural end-of-term buyout.
Early payoff formula: Remaining monthly payments plus any applicable early termination fee, minus a present value discount for paying early. The net result is usually 80% to 95% of the remaining payments.
When it makes sense: If interest rates have dropped significantly since you signed your lease, or if your business can benefit from the tax advantages of owning the equipment (depreciation deduction), an early payoff can be financially advantageous. Run the numbers with your accountant before proceeding.
The Math: Comparing Total Cost
For a $10,000 copier on a 48-month lease:
$1 Buyout: $260/month x 48 months + $1 = $12,481 total. You own the machine.
FMV Buyout: $220/month x 48 months + $2,500 negotiated FMV = $13,060 total. You own the machine.
FMV Return: $220/month x 48 months + $400 return fees = $10,960 total. You do not own the machine.
The $1 buyout is cheaper if you plan to own the equipment. The FMV lease is cheaper if you plan to return it. Your expected end-of-lease decision should drive which structure you choose at signing.
What Most Guides Miss: The Tax Angle
How your lease is classified for tax purposes affects your deductions. An FMV lease is typically treated as an operating lease, meaning the entire monthly payment is deductible as a business expense. A $1 buyout lease is often treated as a capital lease (essentially a financed purchase), meaning you depreciate the asset over its useful life instead of deducting the payments.
The tax implications can change the total cost comparison significantly. Consult your accountant before choosing a buyout structure, especially for equipment valued over $10,000. The “cheaper” option on paper may not be the cheaper option after taxes. For a deeper comparison, read our FMV vs. $1 buyout copier lease guide, and see how these options affect the overall lease vs. buy decision in our copier lease vs. buy comparison.
Ready to Compare Copier Lease Quotes?
Ready to compare copier lease quotes from verified dealers in your area? CopierFinder connects you with pre-vetted local providers so you can compare real pricing, not ballpark estimates. No obligation. No sales pressure. Just honest numbers so you can make the right call for your business.