When your company needs a new copier, besides deciding on which machine to go with you also have to figure out whether you want to purchase a machine or lease it. Both of these options have their pros and cons and it might be hard to decide what’s best for you.
Here are three questions to ask yourself before deciding.
How am I going to pay for a copier?
If you have the cash you’ll probably want to buy a machine. This way you can expense the entire cost of the machine in one year and it could save you money in the long run. But if you want more machine than you can afford, you may want to consider leasing instead of taking out a loan. With a lease you may end up with lower payments because you are only paying for part of the life of the copy machine asset and some companies use a lower interest rate to calculate payments compared to what you would pay for a loan.
How will my copy machine be serviced?
When purchasing machine you have to factor in how the machine is going to maintained over time. Though you can purchase a warranty, depending what is covered and the cost, leasing may be more convenient and save you money. Many leasing agreements include maintenance and service into one price. However, in some cases frequent replacement of down machines can get complicated and lead to you breaking your lease agreement. If you have infrastructure in place to take care of long term maintenance than buying a machine might be a better option.
What will benefit me more? Should I Buy or lease a copier?
It might seem more beneficial to purchase a machine. The total cost can be lower and and it can also be a valuable asset. However, there are some considerations that might make leasing a better option. First you can get a short-term leasing tax advantage. Second you won’t have to worry about disposing of older machines. With a leased machine the company takes it back and you can upgrade to a newer machine if needed. Lastly, you can recover your copier cost faster if the lease is structured so the entire payment is an immediate deductible expense.