Copier Lease vs Buy: Pros & Cons
June 26, 2020
Copier Lease VS Buy: Pros & Cons
All businesses want to make profits, while saving money wherever they can. But you cannot skimp out the quality of the essential office equipment you use. Getting subpar tools means your work may not be as streamlined as it should, and you may lose out on profits.
For businesses, big or small, a copier is a vital part of daily operations. But the copier you are eyeing may not be in your reach, or you may be based out of a small office. Now the question is: should you go for a copier lease or purchase?
Lease vs Buy Analysis
Let us have a look at both the advantages and drawbacks of a copier lease vs buy.
Buying A Copier
PROS OF BUYING A COPIER |
CONS OF BUYING A COPIER |
| Straightforward Process
You are not stuck with a third-party provider- no signing of contracts needed. If you want to sell it and upgrade to another copier, you can do so at any time. |
Not Up-to-Date
No matter how latest your copier is, the equipment may get outdated in a few years. You may be stuck with an obsolete machine. |
| Low Overall Costs
It costs less in the long run. You can save some money on interest. |
High Initial Costs
The upfront cost of the copier purchase is high, and for small businesses or startups, it will be a heavy burden. Just like the car you buy; a copier will also lose its value year by year. |
| Tax Deductions
When you purchase new equipment, it is tax-deductible. |
More Responsibility
Repairs and replacement are the owner’s responsibility. It is difficult to follow the tedious maintenance of the copier you buy. |
Leasing a Copier
PROS OF LEASING A COPIER |
CONS OF LEASING A COPIER |
| Lower Costs
Usually, a short term copier rental does not require a down payment. This means leasing has low initial costs when compared to purchasing. |
Costly in the Long Run
While the initial costs are low, and the leasing company takes care of the upkeep of the copier, your interest rates may be high. Although, you may opt for a short-term copier rental, which is less expensive. Another way to reduce costs is to spread the payments over more months. |
| Easy Maintenance
You may have to sign a contract with the leasing company, but you have a hassle-free maintenance option. The best part is, the maintenance costs are covered by them. |
Contract Terms
Besides being a locked-in contract, the terms of the agreement may be strict. Your copier may increase with your business, then you may have to wait until the term ends. |
| Upgrades
You have the option to buy the machine at the end of your contract, or you may choose to upgrade it. |
No Resale Option
Because you don’t own the equipment, you won’t be able to sell it later on and recover some of its value. |
| Tax Deductions
Your monthly payments on the copier lease are tax-deductible, and since you don’t own the machine, there is no depreciation. |
Lock in Period
Many companies require a leasing period of 2-3 years, this can be a problem if you do not plan to use the equipment for so long. |
| No Obsolescence
Since technology is evolving at a fast pace, you can keep changing your lease to get the latest model of the copier. You get high-tech features, multi-functionality, and more. |
Lease Terms
Leasing terms may not always be best for your needs. Make sure you do business with a reputable company that offers flexible arrangements as well as good service. Otherwise you could be stuck in a lease contract that will only frustrate you. |
| Credit Lines
Lease financing is better than getting a conventional loan since you do not have to worry about the credit line. |
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| Low Interests
You have a lower monthly payment. Even if the loan rates increase in the future, you will make the payments per your lease contract. There won’t be any change. |
Factors to Consider Before Leasing a Copier
As your business needs evolve, you may need to get a copier with higher performance or more features. And, some businesses wrongly calculate their initial needs and may buy or lease a copier that does not fit their work environment.
So, how you can decide between copier lease vs buy?
1. Find out about the leasing company
If they are working with an authorized dealer, you will get to enjoy the best lease program. Find out for how many years they have been in the business.
2. Learn about the rates and terms of the lease
You have a variety of leasing options, spanning over several months or years. Choose the right period as it can affect your monthly payments and interest rates. Find out if you will be paying more than the copier buying costs during the lifetime of the lease.
3. Buy-out option and special conditions
You must ask some crucial questions before you sign the contract. Do you own the copier at the end of your lease term? Find out about the buy-out offer. What if you need to upgrade the copier to suit your growing business requirements before your contract ends? Will they impose any special conditions?
Conclusion
We hope that this copier lease vs buy analysis has some helpful tips to make your decision easier. Finally, it all comes down to your business. You need to make the right decision for your available capital and other circumstances. Weigh the pros and cons of both copier buying and leasing and choose the one that fits your long-term goals.
