Choosing between leasing and purchasing an office copier is a major decision that affects the budget, operational efficiency, and long-term financial strategy of your business. While both leasing and purchasing have their benefits, leasing a copier often stands out as the more flexible, accessible, and financially viable choice for businesses of any type or size. If the time has come for you to invest in an office copier, you still may not be quite sure whether to purchase or arrange a copier lease. Here are some key factors to take into consideration.

Assessing Business Needs for Copier Solutions

To determine the optimal copier solution, carefully evaluate your specific business requirements:

Copy Volume: How many copies does your business produce daily, weekly, or monthly?

Required Features: Do you need advanced functionalities like color printing, scanning, stapling, or folding? Do you want your copier to scan, fax, or operate as a computer printer?

Budget and Cash Flow: Can your business absorb a significant upfront cost should you decide to purchase?

Maintenance and Support: Do you have the contacts you need to handle copier issues and deal with them quickly?

Technological Obsolescence: Are you happy with present-day copier technology, or do you want the most up-to-date machine when it arrives on the market?

Once you’ve evaluated your requirements and decided on the best type of copier for your business, there’s always the financial aspect to consider: should you purchase your new copier outright or lease it?

Lease or Purchase an Office Copier – Assessing Your Budget

Here are some of the differences between purchasing a copier outright and leasing one.

The advantages of purchasing include:

  • Full Ownership: Once purchased, the copier is yours to keep, so you can either continue to own it or resell it.
  • Potential Long-Term Cost Savings: If you plan to use the copier for many years and expect minimal maintenance needs, the overall cost could be less than leasing.
  • Simple Terms: If you own the copier outright, there’s no need for complicated contracts.

However, these benefits come with trade-offs, such as:

  • Equipment can depreciate over time
  • Maintenance and repair costs are your responsibility
  • You risk being stuck with outdated technology
  • Higher upfront costs.

The advantages of leasing include:

  • Lower Upfront Costs: Good for small and medium-sized businesses with limited budgets.
  • Predictable Monthly Payments: Leasing means no unexpected financial surprises, making it much easier to manage budgets and plan for future expenses.
  • Maintenance and Repairs Included: You’re protected from unexpected repair costs, and you’ll usually get much faster repair service, as well as scheduled maintenance calls, from the leasing company.
  • Access to Advanced Technology: Your business can enjoy the latest technology without making any kind of long-term commitment to having to use equipment that may become obsolete sooner.
  • Tax Efficiency: Lease payments can be categorized as operating expenses, making them tax deductible. (For information on business expenses, visit this IRS webpage.)
  • Upgrade Options: At the end of your lease term, you can easily move up to a newer, more efficient copier to meet your evolving needs.

Again, as with purchasing, there can be trade-offs, such as:

  • Over time, leasing may result in higher total costs than purchasing outright
  • Lease agreements require a commitment, which might limit flexibility

However, for many businesses, leasing can be the perfect balance between functionality, affordability, and adaptability.

Copier Lease Types

If you decide on a copier lease, then you’ll also need to decide which type of lease is best for your business. Here are the major lease types to consider:

Capital Lease: Also known as a finance lease, this arrangement is treated more like a purchase for accounting purposes. It may best be suited for businesses planning to keep the copier for the long term, with the option to buy the copier at the end of the lease for a predetermined price.

Key features include higher monthly payments compared to an operating lease, and you’re responsible for maintenance and repairs.

Operating Lease: This is the most popular type of lease for businesses that want flexibility and access to the latest technology without committing to ownership. The leasing company retains ownership of the copier, and the lessee pays for its use over a fixed period, usually 1 to 5 years.

Key features include lower monthly payments compared to a capital lease, and maintenance, repairs, and technical support are often included.

$1 Buyout Lease: A type of capital lease where businesses that are certain they want to own the copier can purchase it for $1 at the end of the lease term.

Key features include higher monthly payments compared to an FMV lease and complete copier ownership at the end of the lease.

Fair Market Value (FMV) Lease: A type of operating lease for businesses that prioritize flexibility and don’t want to be locked into ownership, but still have the option to purchase the copier at the end of the lease for its fair market value.

Key features include lower monthly payments compared to a $1 buyout lease, and the flexibility to upgrade or simply return the copier at the end of the lease.

Managed Print Services (MPS) Lease: This is a comprehensive solution for businesses looking for an all-in-one solution to manage their printing needs. This type of lease bundles copier leasing with additional services like supply management, usage monitoring, and workflow optimization.

Key features include maintenance, repairs, and consumables such as toner, together with advice offered about printing habits to help reduce costs and improve efficiency.

If you’ve considered your options and have decided on a copier lease, then Elite Imaging Systems are definitely the people you need to talk to. Serving Troy, Detroit, and Flint, they are the Midwest’s leading office equipment supplier, providing office technology solutions since 1994.

These solutions include:

  • Document management
  • Managed network services
  • Managed print services
  • Software solutions

But first and foremost, they’re here to provide top-grade copying equipment and keep it running smoothly – and affordably. This means they can offer you the most appropriate copier lease and the best purchase terms available today.

If visiting their showrooms isn’t an option for you right now, you’re always welcome to contact Elite Imaging Systems online – any time.