Leasing a Copier VS Buying a Copier
Most businesses have a need for copiers, but figuring out whether you should buy or lease becomes the key question. Purchasing a copier gives you full control over the maintenance and use of your copier. You can decide when to service the copier and when to upgrade without being bound by contract. The price of a copier will vary based on what you choose, but the capacity for color, printing, scanning, faxing and stapling will have the greatest impact on the price.
With a copier intended for smaller businesses, you can print and copy at around 25 pages per minute, and produce up to 5,000 copies every month. A copier like that will cost you around $3,500. For a mid-level copier, the machine will print and copy at around 35 pages per minute, and it will cost around $4,500. These are a good choice for the small to medium-sized offices with a medium-range need for printing. High-volume copiers will cost around $9,000 to $12,000 and they can push out 60-85 pages per minute. Higher volume copiers were intended for larger businesses because they have more demanding business requirements. A high-level machine can deal with the pressure of your businesses sustaining demand.
What are the Pros of Buying a Copier?
Over the long-term, buying a copier will cost less than leasing because you avoid interest charges. Look at it as if you are buying a car—when you pay with cash up front, you avoid the finance charges. Buying outright does not have a high demand for paperwork, and the process is fairly straightforward. You lay the cash on the table and arrange a delivery date for your new copier. With a lease, the application process involves giving detailed financial information related to your company. In addition, some leasing companies will check your personal credit rating and require a personal guarantee before they approve the lease.
When you buy a copier, you may also be eligible for a tax deduction. You can deduct the entire cost of your copier for taxes as a business expense, but with a lease, you can only deduct the monthly payments of that year.
What are the Pros of Leasing a Copier?
One of the reasons to lease is because copiers depreciate in value after a few years, and even if you try to sell a top-of-its-class copier, it will not give you much profit. Also, technology advances so quickly that it becomes outdated fast, so what was once seen as cutting edge technology before will become obsolete even if you paid for top-of-the-line office technology a couple years ago. Also, if you put a lot of money into a more costly machine, you may not have the cash to upgrade when you want, and an older copier will usually cost more through cost of supplies. You want to look at the total cost of ownership to decide on the best deal.
Flexibility of Leasing a Copier
Most businesses choose to lease a copier, but you should base your decision on individual preferences. What is good for one person may not be good for another person’s circumstances. A lease will usually span for one to five years, and you will have to make monthly payments until the lease term has ended. After that, you have the option to upgrade to a newer copier, but we recommend underestimating your needs, rather than overestimating. The advantage with a lease is that you can always upgrade as your business grows, but because you have signed a financially binding contract, that can make it difficult to downgrade if you have lower printing demands.
The True Cost of a Copier Lease
The factors involved in the cost of a lease will vary from credit history, length of the lease term and the type of copier chosen. For example, a $10,000 copier will cost around $10,900 when you spread out the monthly payments over the course of 12 months. If you spread out the payments over 60 months, that same lease will cost around $13,200. Most leasing companies give customers the option to sign a $1 buyout lease. What does that mean? For a few extra bucks every month, you can purchase the copier for $1 when the term ends as opposed to paying the fair market value which could amount to around 10-15% of the copiers original purchase price. A $10,000 copier could have a (FMV) Fair Market Value purchase option of around $1,500 just to keep your copier. A lot of leasing customers fail to read the fine print on the back of the lease that states the the lessee must pay for shipping of copier back to leasing company that is usually far away and very costly. Copier shipping costs range from around $500 and up to $1,000 depending on weight and how many pallets it takes to ship copier and accessories such as stapler finisher.
More Advantages of Leasing a Copier
With a lease, you have a lower upfront cost, which is why business owners tend to like this option. It gives them a predictable monthly payment plan, and leases will not usually require down payments. Because of that, you have access to better technology because you do not have to pay out a lot of extra cash for it. Small businesses will find this aspect beneficial because they can budget better. Also, when the lease term ends, you can simply upgrade to a newer model that keeps state-of-the-art technology in your office.
What are the Cons of Leasing a Copier?
A higher cost over the long term is the disadvantage of leasing a copier, but you rarely notice it because it comes out in smaller, more manageable payments. If you choose a $5,000 copier, the payments spread out over five years will cost $6,600. In addition, leases will sometimes have stricter contract obligations, and after you have signed an agreement, you could have to pay for the rest of the term even if you do not to use the equipment. Sometimes a leasing company will include maintenance clauses that add up in charges. However, both leasing and buying have advantages and disadvantages, and business owners should give careful consideration to each choice. For monthly lease payment quotes, more information or questions, call or email us today!
