Introduction
When it comes to managing a business, the decision to lease, rent, or buy a photocopier or printer can be a difficult one. Each option has its own benefits and drawbacks, and what works best for one business may not work as well for another.
In this guide we explore the pros and cons of each option to help you make an informed decision.
Leasing A Photocopier Or Printer
Leasing is a popular option for businesses that need to acquire equipment without the large upfront investment that comes with buying. When you lease a photocopier or printer, you pay a monthly fee for the use of the equipment. At the end of the lease term, you can typically choose to renew the lease, return the equipment, or purchase it outright.
Benefits Of Leasing A Photocopier Or Printer:
- Predictable expenses: Lease payments are fixed for the duration of the lease term, which can help with budgeting and forecasting.
- Access to the latest technology: Leasing allows you to upgrade your equipment at the end of the lease term, which can be a great way to stay up to date with the latest technology.
- Lower upfront costs: When you lease a printer or photocopier, you typically don’t have to pay a large upfront cost, which can be helpful for businesses or individuals with limited budgets.
- Maintenance and repairs: Many lease agreements include maintenance and repair services, which means you won’t have to pay out of pocket for these expenses. A photocopier or printer supplier would normally offer your business a managed print service alongside your lease.
- Upgrades: Depending on the terms of your lease agreement, you may be able to upgrade to a newer model or switch to a different machine without having to pay the full cost.
- Tax treatment: lease rentals are usually an allowable business expense. How they are treated for your business depends on the lease type and your accounts, so check with your accountant (our guide to hire purchase vs finance lease explains the main differences).
Our short form gets you up to 4 photocopier lease quotes from suppliers, with no obligation.
Drawbacks Of Leasing:
- Higher overall cost: While the monthly lease payments may be lower than the cost of purchasing outright, the overall cost of leasing can be higher due to interest charges and fees.
- Limited flexibility: Once you sign a lease agreement, you are committed to making regular payments for the duration of the lease term.
- No ownership: When you lease a photocopier or printer, you do not own the equipment, which means you cannot sell it or use it as collateral for a loan.
Renting A Photocopier Or Printer
Renting a photocopier or printer is similar to leasing, but typically involves shorter rental periods and more flexible terms. Renting can be a good option for businesses that have a short-term need for additional equipment.
Benefits Of Renting A Photocopier Or Printer:
- Short-term solution: Renting can be a good option if you only need a photocopier or printer for a short period of time, such as for a special project or event.
- Flexible terms: Rental agreements can often be tailored to meet your specific needs, such as the length of the rental period and the level of service and support you require.
- No long-term commitment: Unlike leasing, renting typically does not require a long-term commitment, which can be beneficial for businesses that are uncertain about their future needs.
Drawbacks Of Renting A Photocopier Or Printer:
- Higher cost per use: Renting can be more expensive on a per-use basis than leasing or purchasing outright.
- Limited ownership: Like leasing, renting does not provide ownership of the equipment, which means you cannot sell it or use it as collateral for a loan.
- Limited availability: Depending on your location and the availability of equipment, you may not be able to find the exact type of photocopier or printer that you need.
Buying A Photocopier Or Printer
Buying a photocopier or printer is also an option, and provides the greatest level of control and ownership over the equipment. When you purchase a photocopier or printer, you own it outright and can use it for as long as you like.
Benefits Of Buying A Photocopier Or Printer:
- Long-term savings: While the upfront cost of purchasing a photocopier or printer may be higher, over the long term it can be the most cost-effective option.
- Greater control: When you own a photocopier or printer, you have complete control over how it is used, maintained and upgraded.
- Ownership: When you buy a printer or photocopier, you own it outright, which means you can use it for as long as you want without worrying about monthly lease payments.
- Cost-effective: Over the long term, buying a printer or photocopier can be more cost-effective than leasing, especially if you use it frequently. When you lease, you’ll likely end up paying more in total than the cost of buying the machine outright.
- No contracts: Buying a printer or photocopier means you don’t have to sign a lease agreement with a service provider, which can be more convenient for small businesses or individuals who don’t want to be tied to a long-term contract.
- Flexibility: When you own a printer or photocopier, you have more control over how you use it. You can choose to upgrade or replace it whenever you want, without having to worry about the terms of a lease agreement.
Drawbacks Of Buying A Photocopier Or Printer:
There are several drawbacks to buying a photocopier or printer instead of leasing it. Here are a few:
- High upfront costs: When you buy a photocopier or printer, you’ll need to pay for it in full upfront. This can be a significant investment, especially if you need a high-end model. On the other hand, leasing allows you to pay for the equipment over time, which can be easier on your cash flow.
- Maintenance costs: When you buy a photocopier or printer, you’ll be responsible for all maintenance and repair costs. This can be expensive, especially if you have a high volume of printing. When you lease, the leasing company typically covers maintenance and repair costs, which can save you money in the long run.
- Obsolescence: Technology changes quickly, and the photocopier or printer you buy today may be outdated in just a few years. When you lease, you have the option to upgrade to newer equipment when your lease is up. When you buy, you’ll need to pay the full cost of a new machine if you want to upgrade.
- Depreciation: Like any equipment, photocopiers and printers depreciate over time. When you buy, you’ll need to factor in the depreciation when you calculate the machine’s value. When you lease, the leasing company takes on this risk.
- Resale value: When you’re ready to upgrade or replace your photocopier or printer, you’ll need to find a buyer if you own the equipment. This can be time-consuming and may not result in a high resale value. When you lease, you simply return the equipment to the leasing company and can upgrade to new equipment if you choose.
The Final Word
Overall, buying a photocopier or printer can be a good option if you have the capital to invest upfront and don’t anticipate needing to upgrade your equipment frequently. However, leasing can be a better option for many businesses, as it provides more flexibility and can save money in the long run.
To price the lease option for your own volumes, try the printer lease calculator, then compare printer lease quotes.