Making the choice between leasing your office copier or purchasing it upfront is a real challenge. On one hand, it’s awesome to have equipment that’s entirely yours immediately without any debt. On the other hand, it’s also a huge advantage to get your office equipment without a cash-out expense and the ability to trade in or trade out your equipment according to the volume and type of printing and copying you need to do. So, which is the better option: purchasing or leasing?

Once you’ve thought about your company’s productivity needs, budgetary needs, and current size, you will be able to make a more informed decision about whether purchasing or leasing your office equipment will be the better option. However, since we all know how challenging this decision can be, we created this guide to help you throughout your decision-making process. What’s better: purchasing or leasing? Keep reading our guide for some further clarity:

Consider Purchasing if…

You want to own equipment without any debt

The main benefit of purchasing your office equipment in cash is that you will end up without any ongoing monthly payments. The only investment you will have to make after finalizing your purchase is an investment into regular maintenance and ensuring that your equipment will be able to stay up and running for as long as possible. You will be able to steer clear of interest charges and other fees.

Once you break down your options, you might also find that you could have purchased the equipment in cash long before the time you make your last investment into the lease. So, if you would prefer to invest a single large installment at once, rather than in smaller increments over the course of months, you should definitely consider purchasing your equipment instead of leasing.

You have no plans to upgrade in the future

Technology is always changing and improving, so it can be a real challenge to keep up with the latest models of all of your office equipment. It’s completely understandable to want to hang onto your equipment for an extended period of time, especially if you’ve found that you’re not the most tech-savvy. Purchasing your office equipment is a good choice if you do not anticipate any large changes in your company’s near future nor do you think that your print volume will change exponentially any time soon. If you feel that your company’s printing or scanning needs will stay the same in five to seven years as they have right now, there may not be a need for you to lease equipment and upgrade to the newest model on a regular basis.  

You will be able to replace the equipment in roughly seven years

We often find that when people purchase their equipment, they tend to hold onto it for seven years or longer. After such a long period of time, equipment becomes much more reliant on regular maintenance to keep it alive. At the same time, it becomes harder to track down the right parts and supplies for older models as companies tend to discontinue models after several years. This can result in a slower response time for necessary repairs, which can have a less than positive effect on your company’s productivity.

With that being said, if you do decide to purchase, you should definitely keep in mind that you will eventually have to replace your equipment in order to save your company from losing money and efficiency in the long run.

Questions to ask yourself before purchasing equipment:

1.     Do you anticipate your company’s print volume will stay the same for the next several years?

2.     Do you have a backup plan for when maintenance and parts for your equipment become expensive and hard to find in the future?

3.     Do you want to hang on to your office equipment for several years and have no desire to upgrade to new office technology any time soon?

If you’ve answered “Yes” to all of these questions, then purchasing your office equipment may be the best option for your company.

Consider Leasing if…

You want to upgrade your equipment in the near future

There are plenty of advantages of upgrading your equipment regularly. When you lease your office equipment, you will be able to trade in your original equipment for the newest technology with ease. Most clients lease for anywhere between three and five years. The benefit of leasing for a few years is that you will be able to take a look at any changes that have taken place and determine what your printing needs are accordingly. For instance, if your company has grown, you will need to acquire equipment that can handle a higher production volume and roll with all of the punches. By leasing, you will never have to risk trapping yourself and your company to equipment that will age and lose its functionality in time.

You want to pay less upfront

If you have your eye on the latest advanced printer model and the price tag is making you sweat, you may want to consider leasing. Leasing can save your company money upfront, allowing you to use the remainder of your budget for other areas. Leasing your office equipment can help you ensure that you are getting the equipment that will drive your company further towards your overall objectives, not just the equipment that is within your budget. Also, you can adjust your lease to fit your specific needs. Plus, you can deduct your lease payments as business expenses, which will reduce your overall cost in the end*.

You don’t want your budget to dictate the type of equipment you can have

Let’s say that your technology budget allotted toward office equipment is $3,000. You’re currently in the market to purchase a new multifunctional printer for your business. You’ve found that your servicer is offering last year’s model for $3,000 at full price, but that they are also leasing this year’s model for $60 per month. While last year’s model will get the job done, this year’s model offers every function you need and more. So, wouldn’t it make sense to take on the lease and save money from the get-go?

By leasing your office equipment, you will not have to let your budget dictate the type of equipment you can get for your company, or use your cash reserves on technology that will become outdated or obsolete in a few years. It’s also worth noting that roughly 80% of clients decide to lease instead of purchasing their equipment upfront. You will be free to treat your company to the fantastic equipment it deserves while also saving money from the beginning. Want to treat your employees to one of those new freestyle fountain drink dispensers, or some other fun technology to spice up your office space? Well, now you can!

Questions to ask yourself before leasing equipment:

1.     Do the terms of the lease work for you and your budget?

2.     Are you okay with making monthly payments for anywhere between 12 and 60 months?

3.     Do you want to be able upgrade/downgrade your equipment when your printing needs change?

If you’ve answered “Yes” to any of these questions, then leasing your equipment might be the right option for your company!

If you’re trying to make up your mind between purchasing in cash or leasing your office equipment, you will definitely have a lot to consider. In the end, your decision should be based off of what will benefit your company the most in the long run. Once you can put that into perspective, the decision will become a lot easier. Best of luck in all of your printing endeavors!

Need help deciding which option will be best for you? We are always glad to help! Reach out by filling out the form below or give us a call at 850-222-2308 to learn more about our purchasing and leasing options.  

*Verify this with your CPA.