The copier, which is sometimes undervalued, is crucial to most businesses but can be expensive. We’ve included a list of advantages and disadvantages for both purchasing and leasing a copier to aid you in determining which strategy is best for your company.
Purchasing a copier
- Tax deductions are available for all new business equipment.
- Lower overall cost — you’ll pay less in interest.
- Simplified procedure — dealing with a third party and signing a lease agreement are not necessary. You will always be able to sell the copier and upgrade if you decide to do so in a few years.
- High initial cost – buying a copier can need a substantial investment than office printer lease.
- Every year, the value of the copier will likewise decline.
- Not having the newest and greatest – New technological advancements are constantly being made in all fields of study. You might not have the newest bells and whistles even though the technology you bought won’t become obsolete in a few years.
- Maintenance: If you don’t have a maintenance contract, keeping your copier properly serviced might be expensive.
Leasing a Copier
- Lower Upfront Cost – Compared to purchasing, leasing has a substantially lower upfront cost because short-term leases often do not require a deposit.
- Upgrade Options – Similar to renting a car, you have the choice to upgrade to a newer copier at the end of the lease or buy the current one.
- Maintenance – When you lease, the leasing company pays for all maintenance expenditures.
- Tax Deductible – Since you don’t own the machine, there is no depreciation on the lease payments each month.
- No Impact of Interest Rates – Your monthly payments will stay the same as specified in your lease agreement regardless of whether interest rates on your loan rise over time.
- No Outdated Equipment – With a laser printer lease, you can be guaranteed that your copier will always be equipped with the most up-to-date technology for your company’s needs.
- The required lease length, which is often between two and five years, is a drawback. This could be a problem if you don’t intend to use the copier for that long.
- Contractual Requirements – Your contract may have tight requirements that, over time, may not be beneficial to your organization. Constantly review the conditions of your contracts.
- No Right to Sell – Since you do not own the copier, you are unable to sell it to recover any expenses.
- Increased Total Costs – Although the initial out-of-pocket expenses are modest, as time goes on, the lease payments could become more expensive because of the interest rate and fees the leasing firm levies.
Lease Terms – Do your homework and lease from a reputable, well-known provider who can satisfy your managed print company’s needs. You don’t want to be bound by a lease whose conditions make your life challenging!