What Are The Pros And Cons For Leasing A Copy Machine?

Purchasing a copy machine is a big decision. It is important to weigh your buying and leasing options, and consider the pros and cons of each choice. Think about the following factors while you make your decision.

Should I Lease A Copier For My Business?

Leasing Pros

You can end up paying more when you rent out rather than lease because of accumulated interest. A copier lease is, however, typically structured so that the full lease payment is an immediate deductible expense. Since you can subtract these fees on your tax return as business expenses, you can marginally offset the net cost. Most of the time, it’s easier to get a lease than a copier loan, and the lease payments are lower because you don’t have to pay for the copier’s entire lifespan.

Many businesses want to rent a computer because they do not have the cash reserves or want to retain their cash flows. You free up money when you have a small upfront expense, which you can spend elsewhere. Some organizations also prefer leasing because it allows them to get a higher quality machine than they could afford to buy and gives them the flexibility to upgrade as necessary. If having the latest technology is critical to your business’ success, leasing is probably a more cost-effective option.

You only have to pay for the time you use the machine using a copier lease. The copier leasing company takes it back when the lease ends, thus saving you the trouble of selling or recycling the machine. Finally, most leases for copiers come with a fixed price that covers repairs and other facilities.

Leasing Cons

The major downside of leasing a copier is the interest accrued. It can also be hard to keep track of the equipment over the lease term, especially if you are ever moving the copy machine to a new office. If you decide to lease, you need to have someone who has solid asset management skills in charge of the deal.

Should I Buy A Copier For My Business?

Buying Pros

If you have the funds to buy a copier, during the lifetime of the copy machine, you ‘re likely to save quite a bit of money. Buying is more simple too. All you have to do is find out what you need, and then look for the best quality, guarantee and service agreement. When you buy, you get considerable tax and ownership breaks, which means you can spend the full cost of the copier within a single year. Alternatively, you can choose to spread the cost over several years as well.

Buying Cons

The biggest obstacle stopping most small businesses from purchasing copy machines is bringing the money together. Buying comes with an obsolescence risk, too. While you save money buying instead of leasing, if you do want to sell it at some point, you are unlikely to get any money back from the copier.