You’re on deadline and need to send out an important document and make additional copies of the report as soon as possible. So, you go over to your office copier and enter the information.
You eagerly wait for the copies to come out, but nothing happens. So, you enter the information again, but the copier just isn’t responding. The same thing happens. "This can’t be happening!"
You suddenly remember that your copy machine is almost ten years old and has been hanging on for dear life for the last two years.
We’ve all been here, and the day has finally come. It's time to get a new copy machine. But now you have to answer a big question:
“Should I lease or buy my office copier, and what are the benefits of each?”
Like any significant office technology purchase, there are advantages and drawbacks to both leasing and purchasing.
You must first learn each option's specifics to ensure you’re making the best buying decision for your organization and employees. But how? You can do it by assessing your printing and copying needs.
Stick around; I’ll show you what I’m talking about!
Lease or Buy Your Office Copier? Pros and Cons Explained
Today, office copiers and multifunction printers (MFPs) can do it all! From printing, copying, scanning, and faxing to sorting, stapling, and assembling—your copier’s got you covered.
Many of us consider the copy machine outdated, taking up precious space in our office. Or, maybe just a commodity that is needed, but there’s never anything new or innovative updates to these devices. However, copiers remain integral to most businesses, especially as many continue working from home.
Your office copy machine is a technology solution for your company. If you haven’t heard this, now is the time to listen. Purchasing or leasing a high-quality copier or MFP is a decision you’ll make for years to come. So, it’s critical to spend some time learning your options.
Option #1: Buying Your Office Copier
For some companies, purchasing the machine outright is the preferred option for sourcing a new multifunction copier or printer. While the upfront costs associated with buying a copier are greater than those with leasing, the return on investment (ROI) may compensate for them.
Of course, when discussing buying an office copier, we must distinguish between purchasing a new copy machine and a used one. Both options have unique advantages.
For instance, when you buy a brand new office copier, you likely won't have to worry about repair bills or sudden breakdowns for a while—which means fewer unexpected costs for your company and fewer headaches! That’s one advantage we can all get behind.
Conversely, used copiers come with a significantly reduced price tag. If the copier is in good condition, purchasing it may be better than buying a multifunction printer fresh from the factory.
Partnering with an experienced and well-versed copier provider comes in handy when determining if a new or used MFP is better for your small business and budget. Learn more by reading our article, How to Choose a Reliable Office Copier Company.
The Pros of Purchasing An Office Copier
A higher ROI in the long run: Even though purchasing a copier is more expensive initially, it's almost always cheaper. You won't have to pay extra financing charges.
If your business has enough cash flow to buy a copier outright, you could save hundreds, if not thousands, of dollars in the long run.
Greater flexibility: Many people forget that if you buy your office copier outright, you can also sell it whenever you see fit. If, for some reason, you no longer need it one year, two years, or five years down the road, you have the option to recoup any potential losses by selling it.
Plus, you and your team members can copy and print as much as you want without worrying about printing penalties or volume guidelines.
A speedy process: Leasing a copier involves a lot of paperwork and can be long and drawn out. For instance, you will likely need to fill out an application, provide the leasing company with in-depth financial information, and subject your company to a credit check.
In contrast, nothing can be simpler than buying a copier outright. In most cases, you hand over the money and return your new purchase to the office or schedule the purchase for delivery.
The Cons of Purchasing An Office Copier
Depreciated value: Your copier's value will depreciate with each passing year. This means that if you decide to sell it at a later date, it won't be worth nearly as much as its original price tag.
Keep in mind that a copy machine is supposed to last you for at least five years. So, selling the machine five years (or more) down the road may not be something you keep on your radar.
Obsolescence or out-of-date: Think about your smartphone or laptop; they only seem new and cool before the latest and updated edition is released. Even the most advanced copy machine today will likely become obsolete within a few years.
If you want to stay current with the latest technological innovations, leasing may be a better option. It's usually much easier to upgrade your copier within the terms of a lease agreement than an outright purchase.
Option #2: Leasing Your Office Copier
Most companies decide to lease their copiers for several reasons. These may include a lack of upfront capital, the need for managed print services (MPS), or the desire to upgrade to a new MFP after a few years.
In general, copier leases span from one to five years. As with most leases, payments are made monthly until the expiration of the lease term. At the end of the term, companies typically have three options:
- Return the copier
- Purchase the copier
- Trade in the copier
Many leasing companies offer capital leases or leases with a "$1 buyout.” These agreements allow companies to purchase their copying equipment at the end of the lease term for $1, provided they pay extra each month of the lease.
A capital lease is like a "loan" that helps a business purchase a copier after paying off the associated interest.
The Pros of Leasing An Office Copier
A lower upfront expense: Many businesses don't have the capital to make one large payment for a new copier, and most leases don't require a down payment. Minimal or no down payment means you can get what you need without breaking the bank.
Predictable costs: Budgeting your business expenses each month is much easier when you have predictable costs. If a purchased copier breaks down, paying for repairs is 100% your responsibility.
However, many lease agreements include language defining the scope and costs associated with managed print services. Hence, you'll not only know your monthly lease payments but also have a good idea of what other services will cost if an unexpected problem arises.
Leases make it much easier for companies to stick to their allocated budget.
Greater ease of upgrade: At the end of the lease term, you can trade your old copier for a newer, faster, and better model. Some leases include automatic upgrades at the end of each cycle, so ask your copier provider if you’re eligible.
The Cons of Leasing An Office Copier
Potential higher costs in the long run: In almost every situation, you'll pay more for your copier by leasing it than you would have by purchasing it outright. This is especially true if you have a longer lease.
For instance, financing or interest charges could cause you to pay $10,000 for an $8,000 printer over five years.
Less flexibility: Breaking your lease is sometimes a difficult task. Remember, a lease is a contract you've signed. If you try to break it before the term has expired, you may be subject to significant penalties. Getting out of your copier lease is similar to breaking the lease of your home or car. There are typically additional charges associated that could cost you a pretty penny.
The Final Say: Buying Or Leasing An Office Copier
As you can tell, determining whether to buy or lease your next office copier takes some time and consideration. A lot goes into your next purchase, and it’s helpful to know your options based on your specific business requirements.
AIS is your go-to source when choosing various office technology solutions, such as copiers for your business. We are dedicated to providing our readers and customers with knowledge and resources about the best products and services. If you'd like guidance on which path is best for you, make sure to reach out to us today.
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