A common question among business owners shopping for a new copier is: should we buy or lease our next machine? The answer depends on several factors including your business’ goals, needs and budget.
Let’s look at the differences between buying or leasing your next machine and how each choice can impact your business.
Leasing a Copier
Technology is constantly evolving. Leasing allows you to change with it, by allowing easy upgrades every few years and giving smaller businesses the opportunity to acquire technology that otherwise might not fit into the budget.
With pre-determined payments, you’ll have a predictable recurring expense, which makes budgeting easier. And since leasing often doesn’t require a down payment, small businesses with modest cash flows can acquire critical technology without a major upfront capital expenditure.
The downside to leasing is that you may need to continue making payments for equipment you no longer need, which can happen when, for example, your business experiences a period of growth or change. Lease agreements can also have hidden end of term costs, which can be a surprise to many business owners.
Buying a Copier
When you buy a copier, you own it. There’s no lease agreement and you’re not tied to the machine. This is a plus for businesses that are growing.
In general, buying a copier outright is a less expensive option than leasing. Because you own it, you can sell and upgrade at any time and recoup some of your initial cash outlay. There are also tax benefits to purchasing, like being able to write off your purchase on your taxes.
However, purchasing may need financing, which could tie up short-term cash flow, making it more difficult to finance other expenses. When you no longer need the device, you may find it has depreciated in value.
There are advantages to both leasing and buying. The best option should align with your organization’s goals. Give us a call and we’ll be happy to show you the advantages of leasing or buying and help you to decide which option is the best to meet your company’s specific business goals!
