Leasing can be a brilliant way to get the equipment you need without the upfront cost — but comparing quotes? That’s where things get tricky.
At first glance, two leasing quotes might look nearly identical. But hidden costs and unclear terms can turn a great deal into an expensive surprise. That’s why we've put together some essential questions you should be asking your suppliers before signing anything.
It’s also a good idea to get all answers in writing — it’s not just smart, it’s safe. If anything seems vague or hard to get a straight answer on, take that as a red flag. Better to pause now than pay later.
1. Are the payment profiles clear?
A rate like £60 per £1,000 over five years with quarterly payments might sound like a great deal... but don’t be too quick to sign.
We once came across a quote that claimed exactly that. But after digging a little deeper, we found the actual cost was £63 per £1,000 — thanks to a cheeky extra quarterly payment hidden in the contract.
Tip: A three-year lease should mean 12 quarterly payments. Not 13!
Also keep an eye on the lease term itself. Even “12 quarters” can sneak into a 39-month agreement if the first payment is due on activation and the second one just a month later. Small details like this can have a big impact on the true cost.
2. What type of lease is it?
This matters more than you might think. Is it an:
- Operating Lease, or
- Finance Lease?
If you’re in the education sector, here’s something you might not know: LEA schools and Multi Academy Trusts are now allowed to sign off Finance Leases — opening the door to all sorts of equipment with no big balloon payment at the end.
3. What's the admin or documentation fee?
These fees go by many names — admin fee, documentation fee, etc. Just make sure you’re not caught off guard.
4. Is there a transfer of title fee?
If you plan on owning the equipment at the end, ask up front: how much will it cost to transfer ownership? Some suppliers pass this through a third party — but the cost should be crystal clear from the start.
5. Is the capital cost of the equipment listed?
You should always see the equipment cost alongside the rental price. If you don’t? That’s a red flag. Without both figures, there’s no way to properly compare or calculate the true cost of the lease.
6. What happens at the end of the lease?
- Will you own the equipment?
- Is there a buyout fee?
- Are you tied to the same manufacturer for upgrades?
- Can you keep using the equipment?
These are big questions — and the answers should be available before you sign.
7. Are there secondary rentals (for Operating Leases)?
If so, how much are they — and for how long?
8. Can the contract be settled early?
Life happens — and sometimes you need to exit early. If that’s the case:
- Can you?
- How is the settlement calculated?
- Is there a discount for early repayment?
9. Is it a Fixed Term or Minimum Term contract?
You should see the term clearly in the main lease body. If you don’t, check the fine print — chances are, it’s a minimum term contract, and that means:
You may need to give notice to end the lease — or it’ll continue past the original term.
10. Is there a charge for paying by invoice?
There shouldn’t be. But some banks try to sneak in a 0.5% premium. Don’t be afraid to ask.
Final Thoughts
Leasing can be incredibly straightforward — if you know what to look out for. Take your time, ask the right questions, and compare like for like. It’ll save you money and headaches in the long run.
And if you’re unsure about a quote or want a second opinion, give us a ring — we’re always happy to help.