Should You Lease an ATM? What Leasing Companies Don't Tell You

The pitch sounds good. "Why tie up thousands of dollars? Lease it. Just a small payment each month, and the surcharge pays for it."

Sometimes that works out. But a lot of business owners sign an ATM lease because the monthly number looks small, and only later add up what they'll pay in total. By then, they're locked in.

Here's how to see the real cost of a lease before you sign.

How does an ATM lease work?

A leasing company buys the machine and lets you use it. You make a fixed monthly payment for a set number of months, often several years. At the end, you may be able to buy the machine for a final payment, return it, or keep leasing.

You still usually load the cash, handle day-to-day problems, and pay for processing and a connection. The lease covers the machine, not the work.

Lease ads often show a modest monthly price, like $50 to $120 a month. That number isn't the cost. The total is.

How do you figure the true cost of an ATM lease?

Use this simple formula:

Monthly payment × number of months + fees + end-of-lease buyout = total cost

Then compare that total to the price of buying the same machine outright.

Here's an example with round numbers. Say you're offered a lease at $99 a month for 60 months, with a $1 buyout at the end.

In this example, the lease costs more than twice as much as buying the machine outright. Your numbers will differ, but run them before you sign.

What have leases looked like in the card machine world?

Card terminal leases show how lopsided equipment leases can get. CardFellow, a payment industry site, reported on a dental office that paid $45 a month for four years for a PIN pad it could have bought for $90. That's $2,160 for a $90 device.

ATM leases aren't usually that extreme. But the structure is the same: a small monthly number that hides a big total.

What lease terms should you look for before signing?

Read every page. These are the sections that matter most:

• Can you cancel? Many equipment leases can't be ended early without paying most or all of the remaining payments.
• Do payments continue if the machine breaks? Often, yes.
• What if your business closes or moves? You may still owe the full lease.
• Who pays for repairs? Some leases include service. Many don't.
• What happens at the end? Is the buyout $1, a set amount, or "fair market value"? That last one can be a surprise.
• Does it renew on its own? Some leases roll over if you don't give notice in time.
• Is there a personal guarantee? If the business can't pay, you might have to.

If any of these answers aren't clear in writing, don't sign until they are.

When can leasing make sense?

Leasing can make sense in a few cases:

• You need the machine now, can't pay up front, and the total cost is still close to the purchase price.
• The lease includes real service and repairs, in writing.
• The location is busy enough that the machine will clearly cover the payment every month.

Even then, compare it to the two options below first.

What are the alternatives to leasing an ATM?

Option 1: Buy it outright. You pay once and own it. You keep 100% of the surcharge with no monthly payment on the machine. New machines we sell start at about $2,480, with free shipping in the continental US, free processing setup when you process with us, a free programming sheet, and 24/7 support. See how much an ATM really costs.

Option 2: Free placement. You pay nothing. We own the machine, load it with our cash, and handle repairs. You receive a share of every surcharge, deposited at the start of each month. See how free ATM placement works.

Option 3: The partnership. We own and maintain the machine. You load the cash and get 50% of the surcharge. See our ATM Partnership Program.

We compare all four paths side by side in do you have to buy an ATM?

The bottom line

Don't judge a lease by its monthly payment. Judge it by its total, its exit terms, and what happens when things go wrong.

If you've been offered a lease, send it to us. We'll show you what buying the same machine from our ATM store would cost, and whether free placement would put more money in your pocket.