The next time your business needs new copiers or printers, you will have to make a basic decision: should you buy or lease? The right choice isn’t always obvious because there are pros and cons for both options. Before you make your decision about acquiring a new copier, we want to share some of our experiences about what works best for our customers from our many years in the business.
Why Buying Your Copiers Might Be Best
If your business has the available capital to purchase a copier or printer outright, it’s a great way to save money in the long run. The sum of your lease payments will be about 25 percent greater than the cost of buying a machine outright. For example, that copier or printer you might buy for $10,000 will cost your business $12,500 or more in lease payments over a 60-month lease. Of course, if you have to borrow the money to buy the unit, you need to consider the cost of interest in your calculations.
When purchasing a printer, you can also recoup some of your investment in the future. Since you own it, you’re free to sell it down the road to another business to get some of your money back. That’s not an option for you when you lease a device.
Another financial benefit to buying a copier or printer is that it is tax-deductible. The entire cost of a new equipment purchase can be deducted from that year’s taxes. This can be particularly beneficial depending on your company’s financial situation.
When you buy equipment, you are completely free to determine how and how long you want to use it. As you’re not locked into a contract with a third party, you can keep it for as long as you like. If that device is reliable and suits your needs, you can keep it well past the duration of a traditional office equipment lease. If your needs have changed or you’d like access to the latest, greatest technology, you can swap the device for a new model.
By purchasing a copier or printer you’ll also have freedom when it comes to the maintenance of the device. Since you own it, it is your property; you can handle any repairs in-house or hire any professional you desire to care for the machine.
Perhaps You’d Love to Lease
There is one major reason the majority of businesses choose to lease their printers and copiers: cash flow. Leasing a device will result in a significantly lower initial expense, and many businesses don’t have the luxury of laying out so much capital upfront for such a sizable purchase. On the other hand, when you lease your copiers and printers, you make a single monthly payment for the machine and its maintenance. You won’t pay a set-up fee. You won’t make a separate payment for the installation. If the printer breaks down or experiences any type of technical issue, your lessor will be on the hook for the cost of any repairs or fixes.
Leasing a copier doesn’t have the impact on your credit that borrowing to buy does, allowing you to avoid tying up your lines of credit There is an implicit interest rate included in the price you get in your quote (that’s why the sum of lease payments is always greater than the cost of a one-time purchase), but you don’t have to carry a note on your balance sheet. You get access to the device you need at a low, predictable, monthly rate, enabling you to put your capital to other uses.
Leasing a copier or printer will allow your company to avoid obsolescence, which happens quickly when it comes to technology. When you lease a device, you aren’t stuck with that particular machine long enough for its features, technology, or capabilities to become obsolete. This allows you to replace it with a newer model at the end of your lease term, so you will never be working with an out-of-date copier or printer.
Leasing also makes sense if your printing needs are ever-evolving and it’s difficult to predict your document output needs a few years out. You can also upgrade machines easily from a short-term lease, allowing you to move from larger to smaller machines and back as you complete a project or busy season.
Which Option Makes the Most Sense for Your Business Copiers?
We have been discussing the choice between buying and leasing copiers and printers in terms of expense, but there’s one more financial consideration in making the choice to buy or lease: which approach gives your business more opportunities to make a profit with available capital?
If you lose $20,000 in sales when you save $1,000 on a printer or a copier, chances are that there is no way you will come out ahead on the deal. Getting the right copiers and printers now may cost you a few dollars more in the long run if you are leasing, but the growth of your business is often worth the tradeoff.
Each business is unique, so which option makes more sense depends on your particular circumstances. Cash flow, the need for the most up-to-date technology, depreciation, lease terms, and flexibility are all considerations that must be factored into your decision to buy or lease.
Are you ready to acquire a new copier or printer for your San Francisco Bay Area office? Or do you need more information to make an informed decision? Golden Gate Office Solutions is here to provide the right copiers and printers at the right price for you, whether through a purchase or a lease. Contact us today to speak to one of our sales specialists.
