Choosing the best copier for your business can be tricky. Once you’ve chosen the best model, you’re left with yet another decision – to lease or to buy? Generally, over time, the copier lease cost tends to be higher than buying, but there are several additional factors to consider as well. It isn’t as easy a decision as you think! In fact, the pros and cons, as well as how often you plan on using the copier are things that must be weighed before you decide to lease or buy.
Compare It to Leasing a Car
There are some people who prefer to buy a car, while others want to lease one. Both have their pros, of course. For example, with every payment you make on your copier (or car, to continue the example), you come one step closer to fully owning it. However, cars and copiers both depreciate in price, so by the time it’s paid off, you may have lost a bit of money on the deal. However, there are those who view the ownership part as the most important, in which case, the overall worth isn’t a factor.
With a lease, you provide a down payment, and then pay less money each month in order to use the equipment. In this case, the copier lease cost is often lower than those ownership payments. Businesses that are just getting off of the ground or even those that don’t want to pay a large amount each month for their office equipment will appreciate this. Lower bills are always a bonus. In addition, once the terms of your lease are up, it’s easy to swap out your old model for a current one. Copiers are constantly going through periods of innovation, just like motor vehicles.
The Maintenance Issue
Another topic to consider when thinking about copier lease cost is the overall amount that you’ll need to pay for maintenance. How much do you think you’ll need to pay with a lease? The odds are good that any repairs and other maintenance issues might be built into the lease terms. With the exception of extreme circumstances, you may not need to pay for a lot of the maintenance. You’ll save money there, as long as you have a maintenance package on your lease.
When you purchase a copier, even if you’re on an installment plan, you’ll still need to cover that maintenance yourself. Do you know how to fix a broken copier? What happens if a piece of paper gets stuck and you can’t reach it? Are you able to take the copier apart and put it back together so that it works? Honestly, in most cases, the answers to those questions is a resounding “no.” You’ll need to call in a professional repair person, which will add to the overall cost of your copier. Many smaller businesses may not have the budget for what will most likely be costly repairs. In this scenario, leasing a copier wins out.
Additional Costs to Consider
Going back to our car example, there are mileage terms built into the lease. You need to consider this as a part of your copier lease cost as well. You might have a limit on how many copies you’re able to make each month or year, and if you exceed that, you’ll have to pay extra. The copier leasing companies do this in order to ensure that the equipment stays in good shape year after year. Too many copies can add to the wear and tear on the mechanisms that make the copier run smoothly.
On top of this, the companies that lease copiers need to make some money as well. There needs to be something in it for them. In order for them to do this, they add some interest to your payments. After all, they are the ones maintaining the equipment, so it makes sense that this interest would be added into the terms of the agreement. This is yet another factor to add in when trying to determine your copier lease cost.
What If Your Company Grows?
Business growth is another factor. What happens if your business grows beyond what your copier can handle? You might be stuck with a copier that no longer meets your needs if you purchase one outright. A lease is better in this example because once that period of time is up, you’ll be able to lease another, updated model – one that can handle what you need it to. Plus, if you end up with so much to copy and that you must have a second machine, the company that you leased it through will be able to help. After all, they already have a relationship with your business and will want to continue it in every way possible.
Overall Costs
Generally, when you go to purchase a copier outright, you have to provide a down payment and then agree to a payment schedule. You might pay more in interest charges, as well as come up with more money for the down payment itself than you would with a lease. Plus, if the copier becomes obsolete during that period of time or breaks down, you’re stuck and will have to buy another machine or come up with the money for costly repairs. You don’t have as many options.
Leasing a copier, in many cases, makes more sense, especially for companies that need to constantly innovate and possess the newest models on the market. Newer businesses will benefit from the lower monthly payments, as well as the ability to build their credit by paying for the lease on time every month. This is always a good thing!
As you can see, the copier lease cost is generally lower than just buying one. You’ll save money each month, and you will also be able to upgrade at the end of the lease. These are just two of the many advantages of leasing a copier rather than buying one. So, lease and copy away!
Should You Lease or Buy Your Office Copier? Key Considerations for Your Business
Choosing between leasing or buying a copier can be a tough decision for any business. The copier lease cost may appear lower at first glance, but several factors make this choice more complex than it seems. Whether you’re a small startup or an established company, here are some points to consider before you decide which option is best for your business.
Leasing vs. Buying: A Comparison
Much like leasing a car, leasing a copier allows you to pay lower monthly payments without committing to the full price upfront. Leasing gives businesses flexibility, especially for newer businesses or those wanting to conserve cash flow. Unlike buying, leasing offers the benefit of easily upgrading to newer models once your lease term ends—important in a world where technology constantly evolves.
The Benefits of Leasing: Lower Initial Costs and Easy Upgrades
Leasing your copier often requires a smaller down payment than purchasing, allowing your business to avoid a large capital expense. This option is ideal for businesses looking to keep their expenses low in the early stages or those who want to maintain a steady budget without worrying about large, unpredictable repairs. Leasing also allows you to upgrade to a newer, more advanced copier once the lease term ends, ensuring your business always has access to the latest technology.
Maintenance and Repairs: Which Option Is Easier on Your Budget?
When you buy a copier, you’re responsible for maintenance and repairs, which can add up over time. Even with an installment plan, you’ll face out-of-pocket expenses for fixing broken machines or replacing parts. Unless you have a dedicated IT team or in-house expert, repairs can quickly get expensive. On the other hand, leasing usually includes a maintenance package, meaning repairs are often covered—saving you from unexpected costs.
Understanding Extra Costs in Leasing
While leasing offers lower initial payments, keep in mind that some copier leasing companies include mileage-like terms, restricting the number of copies you can make per month or year. Going over this limit often results in additional fees. Moreover, leasing companies add interest charges into the contract, further increasing the overall cost. It’s crucial to calculate these extra charges when evaluating whether leasing or buying is more cost-effective for your business.
What Happens If Your Business Expands?
For businesses experiencing growth, a copier that works perfectly now may no longer meet your needs in the future. If you purchase a copier, you could be stuck with a machine that can’t handle increased volume. Leasing, however, allows you to easily upgrade to a more capable model at the end of your term, ensuring your copier grows with your business.
Long-Term Financial Considerations: What’s the Real Cost?
Although buying a copier means you’ll eventually own it outright, it also means higher upfront costs and potential repair bills down the line. Leasing typically involves a lower down payment and a predictable monthly payment, but don’t forget the added costs of interest and potential overages on copy limits. Ultimately, leasing may provide a better financial option for companies that need flexibility, lower upfront costs, and regular upgrades to keep up with technological advancements.
Is Leasing the Right Choice for Your Business?
For many businesses, leasing a copier makes sense due to the lower monthly payments, ease of upgrades, and included maintenance. Smaller or newer businesses, especially those with fluctuating needs, may benefit from leasing to avoid high initial costs and unpredictable repair expenses. If your business requires constant innovation or has high-volume printing needs, leasing might be the ideal choice for you.
In conclusion, while leasing offers numerous advantages—such as lower upfront costs, built-in maintenance, and the ability to upgrade—it’s important to evaluate your company’s specific needs, growth plans, and long-term financial outlook. For those seeking convenience and flexibility, leasing could be the right solution for your business.
