Should You Lease or Buy a Copier?
The right copier can make or break your business. Anyone who's ever worked in an office knows the pain of hearing those words: "copier's down again." Whether you are looking to replace, upgrade, or add a new copier, the investment bears careful consideration. Today, we're going to look at one factor to consider when choosing a new copier: leasing vs. buying.
Initial Costs of Leasing vs. Buying Office Equipment
The initial cost of leasing major office equipment, like a copier, will always be far less than the cost to buy that equipment outright.
If you need a copier, now, and the price tag to purchase is too high, then leasing may make a necessary but otherwise impossible investment attainable.
In addition, leasing a copier gives you the chance to always have the latest and greatest. For example, perhaps you could afford to buy an older model copier that works great. However, with a lease, you can afford a newer copier with better functions and higher quality.
Cost Over Time of Leasing a Copier vs. Buying One
Leasing a copier will (almost) always cost more over time than buying the same copier outright. Take the time to get the numbers and compare.
Factors to consider when comparing:
1) The probable lifetime of a leased vs. purchased copier.
2) Any attached warranty contracts and support costs.
3) Value of your initial investment over time. (If you were to lease vs. buy and still have X amount of money to invest in your business, how much will that amount be worth over the term of the lease or the lifetime of the copier?)
Tax Considerations of Leasing vs. Buying
A copier is a legitimate business expense which you can - and should - deduct. If you buy, you get to deduct once, but you get to deduct more that first year. If you lease, you get to deduct for as long as you maintain the lease, but only the amount of the lease payments.
If you do choose to buy a copier, you may also be able to deduct depreciation expenses over time as the older copier loses value over time.
To put this another way, the difference in tax-deductible expenses makes sense because buying a copier
1) costs more at first, but
2) cost less over time, and
3) leads to your business having an obsolescent and less valuable copier you will eventually need to replace.
Support Options - and Costs
Whether you buy or lease, however great the copier may be, sooner or later something will probably go wrong. Questions you need to have in mind when reviewing prospective purchase and lease terms:
1) If the copier breaks, how much will it cost to have someone come and fix it?
2) What are your support options? Do warranty or lease limitations require you to go to this company or their approved support partners?
3) What kind of SLA's are in place? That is, how long will you have to wait until help arrives? What recourse will you have if support does not meet expectations?
4) In general, what kind of track record does this equipment manufacturer, this sales or leasing company have? How do previous customers rate them?
If you do decide to go with a lease, keep in mind that copier leasing companies offer a broad range of services and contract terms. Make sure to read the fine print closely. In some cases, the leasing company will require you to pay them to fix what is technically still their copier. In other cases, you may be allowed to choose a repair company of your choice but still need to pay. Similarly, if you choose to buy a copier, attempts to fix seemingly minor problems yourself could lead you to void your warranty. In general, owning will mean that you get to make your own support decisions - but not always.
Invest in Good Office Equipment With Confidence
A new copier is an important investment, and we would love to help you make the right choice. Contact Technocom today, so we can answer your questions and schedule a FREE office evaluation to assess areas where you can start saving money.