When deciding whether to upgrade to a new copier or add a printer to your office, you can either purchase it outright or lease it with smaller, periodic payments. There are a lot of pros and cons to buying or leasing an office printer.
We frequently address client inquiries regarding the best option for their organization. To make an informed decision and benefit from special offers, it’s essential to clearly understand the advantages of leasing versus buying your next copier. Each organization is unique, and having a clear strategic approach to leasing or buying technology is crucial for making the best choice.
Advantages of Leasing a Printer
There are multiple advantages to leasing a printer rather than buying one. These advantages include reduced taxes, ease of upgrading, capital conversation, and so forth.
Tax Benefits
Did you know you can lease equipment and still take full advantage of the Section 179 deduction? By leasing a piece of qualifying equipment with a guaranteed purchase option, you can deduct the full purchase price, up to $510,000, from your gross income according to Loffler.
The key benefit of leasing or financing your copier and then utilizing the Section 179 deduction is that you can deduct the full cost of the equipment without paying the entire amount upfront. The tax savings can even exceed your lease payments, making this deduction highly beneficial for your bottom line and improving your cash flow.
Ease of Upgrading
Leasing an office copier offers flexibility for add-ons after the lease begins, unlike purchasing where you’re locked into a single configuration. If you need to add features like a staple finisher or require more speed, the right leasing company can provide a favorable buyout option for upgrading or replacing your copier.
No Need to Fix a Broken Printer
Similar to leasing an apartment, if something goes wrong, it’s not your problem. This allows you to spend less time fixing the printer and more time working. This can be especially beneficial if you print a lot and demand a lot of a printer.
Capital Conversation
Paying the full purchase price upfront for new technology can require a significant cash flow. However, leasing a copier can free up that cash for other uses. With monthly payments tailored to fit your cash flow needs, you can acquire the latest technology now without the large initial expense.
Fixed Payments
With a copier lease, your payments are fixed for the entire lease term, allowing you to budget and manage your technology equipment costs predictably. In contrast, if you purchase equipment and it breaks down, you may face unexpected and substantial expenses for upgrading or replacing it.
Disadvantages of Leasing a Printer
Nonetheless, leasing comes with its own set of disadvantages. A few of the common disadvantages include a larger overall cost, limited modifications, and less customization.
Larger Overall Cost
Over time, leasing typically results in higher costs compared to purchasing office equipment outright, mainly due to interest charges and ongoing monthly fees. The cumulative expense of financing the equipment throughout the lease term can be considerable. Consider the potential impact on your bottom line – the total cost of leasing over an extended agreement period could far exceed the upfront purchase price.
Limited Freedom
Furthermore, the leased equipment remains the property of the leasing company. This means you have limited freedom to sell or customize it as you wish. Essentially, you’re borrowing the equipment for a predefined duration, and any alterations would require approval from the lessor.
Lack of Flexibility
The absence of ownership can be problematic if you have specific requirements or preferences for your copier or printer. Leasing agreements often bind you to a contract for a fixed period, regardless of any changes in your printing needs. This lack of flexibility could pose challenges if your business experiences sudden fluctuations in printing volume.
Advantages of Buying a Printer
Purchasing a printer or copier outright comes with its own set of benefits. When you buy such equipment, you become its owner, granting you the freedom to utilize it for as long as it remains functional, sell it if necessary, or customize it to your liking.
Customization
Ownership provides a level of control that leasing cannot match. The option to customize allows you to equip the equipment with specific features or software that best suits your workflow. Whether it’s a larger paper tray or a particular duplex printing function, owning the equipment enables you to tailor it precisely to your needs. Just imagine the efficiency gains and cost savings from having office equipment perfectly aligned with your printing requirements.
Long-Term Savings
While purchasing involves a higher initial cost, it typically results in long-term savings compared to leasing, especially if you intend to retain the equipment for several years. Over time, the initial investment pays off as you avoid the ongoing fees associated with leasing.
Control Over Repairs
If your plan involves using the office equipment for an extended period, buying can offer a more cost-effective option with a significantly higher return on investment (ROI). Additionally, you have full control over maintenance and repairs, allowing you to select your preferred service provider or handle troubleshooting internally.
This flexibility proves advantageous, particularly if you have a reliable technician on staff or prefer to manage repairs through your chosen service provider instead of relying on the leasing company’s maintenance plan. By taking charge of repairs in-house or utilizing a trusted third-party service, you stand to achieve substantial cost savings in the long run.
Disadvantages of Buying a Printer
Purchasing a copier or printer presents its share of drawbacks. The upfront cost can pose a significant challenge for many businesses, particularly those with limited cash flow or tight budgets. Although you’re likely to achieve long-term savings, the initial investment may serve as a barrier to entry.
Upfront Expenses
The strain of a substantial upfront expense could potentially hinder other vital investments or affect your cash flow. It’s crucial to carefully assess your budget constraints before committing to buying a copier or printer.
Expensive to Upgrade
Technology evolves swiftly, and owning a printer might mean foregoing the latest features and efficiencies as newer models enter the market. While upgrades are possible eventually, at an additional cost, you’ll need to handle the sale or disposal of the older equipment or contend with an outdated printer that no longer meets your needs and may lack the latest security features.
Technical Issues
Last, the responsibility of troubleshooting technical issues, scheduling repairs, and managing toner or ink cartridge replacements falls squarely on your shoulders. This can demand additional time and resources from your office staff, whose efforts are better directed toward the core functions of the business.
Leasing Vs Buying Printers and Copiers
If you are interested in leasing or buying a printer or copier, we would love to help you find exactly what you need! With so many options available, it can be difficult to find what is best for your office. Reach out to us to get help finding your next printer.
