One of the first things businesses ask when they start shopping for a copier is whether or not they should lease or buy the copier. The answer depends on your company goals, needs and budget.Copiers are no longer static technology. These multifunction devices can copy, print, scan and fax, and serve as an on-boarding tool for electronic document management systems. In short, the copier has gone from a paper replication tool to one of the most critical staples of any office.
It’s important to note that whether you choose buying or leasing, if you work with a reputable independent dealer, you are able to shop and compare from the top manufacturers, ensuring you get what you need and stay in your budget. If you’re working with a reputable dealer that can offer both purchasing and leasing options for copiers, you can get great service packages and the best rates possible. With that in mind, let’s look at the differences between leasing and buying, and how they’ll impact your company.
Leasing a copier
Leasing is a great way to keep up with the rapidly changing copier and multifunction device technology. Just like leasing a car, it allows you to upgrade every few years with relatively little hassle. With these continual upgrades comes improved efficiency and productivity, as well as increased energy efficiency and the savings that accompany it.
You do tend to pay a little more per month with leasing than you would if you were financing a copier purchase. If you continually lease, in the long run you will end up paying more than if you purchased a copier outright – but, you will be getting newer models every few years.
Tax wise, you are able to write off your lease payments as a business expense without worrying about capitalization and depreciation. Also, as the copier is not owned by your business, it is not considered a liability on the books, either. Fewer liabilities make it easier to procure financing to meet other business goals.
Buying a copier
Just like buying a car, the main benefit of buying a copier is an obvious one: you own it. You are not bound by any leasing terms or stuck with the machine for a specific length of time. If you’re growing and changing rapidly, consider how quickly a copier might stop serving your needs. Since you can sell it at will, you are free to upgrade whenever you feel the need to and you’ll recoup a good bit of the money you spent. When you lease a copier, the money you spend is gone, never to return.
Many companies struggle to purchase a copier because of their cash flow. Since the purchase is likely to require financing, it could tie up their liabilities and make it more difficult to finance additional capital expenses. On your taxes, you will be required to depreciate the value of the copier using a standard depreciation table. However, it may be possible to depreciate in one year – speak to a certified tax specialist for assistance.
There are definite benefits to be gained whether you lease or buy a copier. It’s all a matter of determining what is going to help you meet your organizational goals. If your goals will require steady tax deductions or capital financing, you might want to lease a copier. If your goal is to spend less in the long run and acquire a dependable modern copier, then buying might be in your best interest. Your sales representative can consult with you to help you decide which option will help you meet your business objectives at the best price point.
Are you considering buying or leasing a copier? Milner, Inc is one of the largest independent copier dealers in the country. Choosing from the top names in the industry, our technology consultants can work with you to find a great fit for your company at a cost that you can afford. Contact us today.