Equipment leases, whether for machinery, vehicles, or technology, carry long-term commitments and end-of-term surprises that catch many small businesses off guard. Review these terms before you sign.
Payment structure and total cost
Look past the monthly payment to the total cost over the full term, including any down payment, fees, and taxes. Compare that total to the outright purchase price to understand what the lease is really costing you.
Maintenance and repair responsibility
Confirm who is responsible for maintenance, repairs, and insurance. On many leases these fall on you, the lessee, which can add significant unbudgeted cost.
End-of-term options
Understand what happens when the lease ends: return the equipment, renew, or buy it out. Check the buyout price and whether it is a fixed amount or fair market value, which can be higher than expected.
Auto-renewal and early termination
Many equipment leases auto-renew month to month if you do not return the equipment or give notice. See our auto-renewal guide. Also check early-termination penalties, which are often steep.
Review before you commit
Run the lease through AI contract review to surface the renewal, buyout, and penalty terms. See our general review checklist.
ContractsIQ provides software-based contract analysis and is not a law firm or a substitute for legal advice. For decisions with significant legal or financial consequences, consult a qualified attorney.