It’s not always feasible to buy a brand new, or even a second-hand, office copier. They’re a significant upfront investment, and can quickly become a liability if your circumstances change. Thankfully, your options are not limited to just buying a machine – you can rent or lease copiers and printers instead. The copier rental and leasing sector is set to reach over 108 million units by 2029, so you certainly won’t be alone in choosing to rent or lease instead of buying.
That said, rental is different from leasing, and a copier for lease comes with its own benefits and drawbacks. The key question is whether leasing is the best solution for you. This article will help you decide.
Renting Isn’t Leasing
The key distinguishing factors between renting and leasing a copier are the duration and flexibility of the agreements.
Copier rentals are for a shorter period and have more flexible contracts. It’s rare to see rental periods extend past a year, and early cancellation seldom incurs additional penalties. However, while rental options may work out cheaper in the short term, the longer you use the machine, the more you’ll pay. So, it’s a matter of convenience. At the end of the rental period, the device is returned to the company, or traded out for a different model, if needs be.
Leasing, on the other hand, is for a much longer period. The contract is usually more formalized and often extends for up to five years, which is the standard life expectancy of a copier. Once this period is up, the customer has the opportunity to buy the machine at fair market value (FMV), or lease a different machine.
That said, renting and leasing do share some similarities:
- The machine remains the property of the supplier at all times, and can’t be claimed as an asset by the customer.
- Both renting and leasing are good options for those with low credit scores or limited budgets.
- Repairs and maintenance are the responsibility of the supplier, although the scope of the services provided can vary considerably.
- The supplier may offer additional services to boost the value of its offering, such as discounted supplies, staff training and managed print services. However, these services often usually cost extra.
The Benefits of a Copier for Lease
While leasing clearly demands a more serious commitment than renting, that doesn’t make it any less appealing in the right circumstances. In fact, there are several advantages to a long-term copier for lease. Let’s take a look at a few of the major benefits.
Flexible Financing
Like renting, leasing provides more flexible financial options than buying a copier. Securing a loan to buy an expensive copier may take a while to approve and isn’t an option for those with low credit ratings. When you lease a copier, you pay for the printer in regular instalments at a fixed interest rate, which simplifies budgeting and cash flow forecasting.
Leasing payments are also tax-deductible, and provide the added benefit of not having a depreciating asset on your books. Plus, the lease agreement usually includes free installation by the print company.
And if you decide to buy the machine at the end of the lease period, some of the leasing fees you paid will be offset against the purchase price. In that sense, your leasing fees can be considered an investment of sorts.
Maintenance Included
No matter how sophisticated a copier may be, there’s always something that can go wrong with it, often at the most inconvenient times. Your leasing agreement will almost always include maintenance and repair services by your supplier. So, in case of an emergency, you won’t be left frantically searching for reliable technicians, and worrying about the cost of the repairs.
Print suppliers have in-house professionals with deep knowledge of their machines and how to keep them running smoothly. Some companies even offer preventative maintenance to catch smaller issues before they become big problems. It’s always better, both for your sanity and the copier warranty, to let the experts handle breakdowns and other malfunctions, and leasing does just that.
Made for the Unpredictable
The business world is volatile. Things change: companies scale or cut back; machines that are workhorses today may be unnecessary later; and printing needs might change. In each of these cases, leasing a machine gives you more flexibility and control than buying a machine.
So, if you’re expecting your circumstances or requirements to change, then a limited term copier for lease contract might well be a better option than buying a costly asset outright. You may be able to come to an agreement with your supplier to swap out copier models or return them entirely.
Staying in the Loop
Technology is constantly improving. Anyone who’s bought a computer knows that in a few years there’ll be better models that can accomplish more, and often even at a lower price. Leasing keeps you from getting left behind, as the copier you lease isn’t a static depreciating asset, and can be traded out for a more current model after a certain period. So, you’ll never have to worry about obsolescence.
What’s more, leasing can also give you access to features like feed trays and binding equipment that usually only appear on higher-end machines. If you buy a copier, you might not be able to afford them. So, the staggered monthly installments of a lease agreement might give you access to features that you need, but might otherwise have been out of reach.
The Drawbacks of a Copier for Lease
Of course, leasing isn’t the perfect solution for every occasion. Like any system, it does have some drawbacks. It’s up to you to decide whether any of these drawbacks are deal-breakers for your business. Here are the main downsides to a copier for lease:
- Longer lease periods – Unlike rentals, lease periods range from about two to five years. This is obviously not appropriate if you only need a copier in the short-term. Furthermore, leasing comes with stricter contracts, and there are often penalties attached if you want to terminate your contract early.
- No ownership – You won’t be able to call a copier your own until the lease period expires and you choose to buy it. This can be both a benefit and a drawback, since you have no asset to sell to recoup some of your investment.
- Long-term costs – Leasing costs are lower than rental costs, but still add up over time. You’re paying for the convenience, service, and other extras. Add the interest payments, and you can often end up paying more for leasing a machine than you would if you’d bought it, even if the cost is staggered over several years.
- Bad providers – Choosing a bad print supplier can lead to less value-for-money and more headaches than you bargained for. The terms of your agreement may not be great, and the service might be significantly less than ideal. So, be sure to choose the best supplier that you can find.
Lease With the Right Partner
Whether renting, leasing, or buying, choosing the wrong print supplier can cause no end of problems. You need a partner that understands their business and is willing and able to understand yours. If you’re looking for a copier for lease in the Troy, Detroit, or Flint area, then Elite Imaging Systems is your answer.
We’ve been offering office technology solutions since 1994, and have over 1500 satisfied clients. Our friendly and skilled staff is standing by to help you find the best solution for your unique copier needs, and provide all the support you need. Contact us today.
