Pros and Cons of Leasing Copiers
Are you considering leasing a copier for your business? If so, you’re probably wondering if it’s the right decision for you. In this article, we’ll take a look at the pros and cons of leasing copiers so that you can make an informed decision. Keep in mind that the decision to lease or buy a copier depends on your specific business needs, so be sure to weigh all the factors before making a final decision.
Pros:
100% Financing
Leasing a copier allows you to make small, manageable payments over time rather than one large purchase. This can be helpful if you don’t have the up-front capital to buy a new machine outright. You may also be able to get 100% financing when leasing, meaning that your monthly payments could cover the entire cost of the copier.
Lower Upfront Cost
The biggest advantage to leasing a copier is the lower upfront cost. When you lease, you are essentially paying for the use of the machine over time, so you don’t have to come up with the full purchase price all at once. This can be a big advantage if you don’t have the cash on hand to buy a new machine outright.
Flexibility
Another advantage to leasing is that it can provide some flexibility in terms of upgrading or downgrading your machine. If your business grows and you need a more powerful copier, you can usually arrange to upgrade your lease. Conversely, if your business slows down and you need to cut costs, you can usually arrange to downgrade your lease as well. This can be a big advantage over buying, where you may be stuck with a machine that is no longer suitable for your needs.
Maintenance Costs Can Be Covered By The Leasing Company
One of the pros of leasing a copier is that the leasing company will typically cover maintenance costs. This can be a significant saving, as copier repairs can be expensive. Of course, you will want to check with the leasing company to find out exactly what is covered and what is not.
Option To Upgrade Your Copier
Another pro of leasing a copier is that you may have the option to upgrade to a newer model at the end of your lease. This can be a great way to get access to the latest technology without having to pay for a brand new machine outright.
It Is Tax-deductible
The entire amount of your monthly lease payments can be 100% tax-deductible as a business expense. When you add in the service and maintenance agreements, which are also tax-deductible, leasing starts to look like a very attractive option for businesses.
Cons:
You Might End Up Paying More In The Long Run
One of the potential downsides of leasing a copier, however, is that you may end up paying more in the long run than if you had purchased the machine outright. This is because leases typically have higher interest rates than traditional loans. Additionally, at the end of a lease term, you may not own the copier outright and would likely need to either renew your lease or buy the machine.
Lease Period Requirement
The biggest downside of leasing a copier is the lease period. Typically, businesses will sign a 3-5 year contract when leasing a copier. This can be problematic for businesses that are growing quickly or experiencing financial difficulties.
If your business grows too quickly, you may find yourself needing to upgrade your copier before your lease is up. If you experience financial difficulties, you may find it difficult to make the monthly payments on your lease.
Contract Conditions
The biggest potential downside to leasing a copier is that the terms of the lease contract might not be ideal for your business. For example, the length of the lease could be too short or too long for what you need, or the monthly payments could be higher than you can afford.
Accrued Interest
The main downside of leasing a copier is the accrued interest. When you lease a copier, you’re essentially borrowing money to pay for the machine. And like any loan, you’ll have to pay interest on that borrowed money. The longer your lease term, the more interest you’ll accrue. In some cases, the total amount of interest you pay can exceed the original cost of the copier itself! So if you’re considering leasing a copier, be sure to factor in the potential interest costs when making your decision.
So, what’s the verdict? Is leasing a copier the best option for your business? The answer to that question depends on several factors, including how often you expect to need a new machine, how much money you’re willing to spend upfront, and whether or not you want to be responsible for maintenance and repairs. That said, if you do decide to lease a copier, make sure you take the time to compare quotes from different providers—you may be able to get a great deal. And don’t forget: Office Machine Specialists is here to help! Give us a call today and let us help you find the perfect machine for your needs.
Are You Looking for a Photocopier Near Concord, California?
Office Machine Specialists has been servicing and selling office equipment since 1995. A family-run business that has dedicated our efforts to providing the best equipment options and after-sales service to our clients. Our goal is to ask the right questions and guide our customers to make smart decisions about new machine leases and purchases. We were servicing copiers long before the internet was a viable resource, and have transitioned to the digital workflow environment of color printing, scanning, account control, and fleet management. With over 20 years in the industry, we have extensive experience with all the major brands and consider OMS to be a valuable resource to any organization. Contact us for all of your copier needs here!
