Copier Leasing Expenses In 2021
Nowadays, most businesses are seeking a “future-proof” technology in order to satisfy their needs. Whether your company needs a copier for a short-term kind of project or you simply don’t want to invest as much in buying one instantly, copier leasing can be the best option for you.
According to many statistics, almost all of the well-known copier brands offer copier leasing for really reasonable prices.
We know that choosing the right equipment for your business can be difficult because there are so many different technologies, brands, and other features you need to understand and analyze. So, let’s see the pros and cons of buying or leasing a copier. First, we will take into consideration the benefits and drawbacks of purchasing a copy machine.
Pros And Cons Of Buying A Printer
One of the main benefits is ownership since once you’ve paid for the office equipment, you have complete possession of it. That means that decisions are entirely yours, and you can sell it anytime you want. Also, buying one can sometimes be claimed on your taxes, but however, you should consult an accountant in order to see if this will be worth it in the long-run.
On the other side, there are some situations when buying a printer may not be the right choice for your company. One of the biggest disadvantages of purchasing a copier is that the upfront cost is definitely higher. And if technology evolves further, there is the possibility that you may be stuck with a copier that cannot be replaced or resold.
Copier Leasing, on the other hand, allows you many financing options. You can spread out smaller payments over time which is really a friendly option for your budget. Also, the warranty that you will get from the manufacturer in most of the cases covers servicing and maintenance of any defective parts of your copy machine.
It is well-known that copier leasing will costs you less in comparison to purchasing a copier. Also, in accordance with this subject of costs, many other businesses may want to purchase your piece of equipment at the end of the lease for a very reasonable price. You can add more features to your copiers, such as doubling as a scanner or printer or even a fax machine that allows you to email and scans numerous documents. Copier leasing has the added tax benefit of being an expense, whereas if you were to buy the copier, it would be a depreciable asset.
Nonetheless, there also some cons of leasing a copier. Most companies that deal with copier leasing require a certain period of leasing time, of a minimum period of almost three years. So, this may be concerning if you don’t plan to keep the machine for that long. Also, the equipment, in this case, the copier, belongs to the copier leasing company. This means that you will not have the right to sell the copier to recoup any cost. Last but not least, discuss the leasing terms to see if they will suit you and your company’s needs, and make sure you choose a reputable company with more flexible agreements.
Should You Lease A Copier?
Now the main thought is should you lease your office supplies or not. Deciding to lease your office equipment has its own advantages and disadvantages for your business, as we discussed and described before.
The most significant advantage when you consider leasing office equipment is that the company does not have to come up with a large sum of money upfront. Instead, you can spread out the amount over several years or longer, which will help you maintain a better cash flow.
The pace of technological advances in recent decades is astonishing. Different manufacturers come up with new, better, more sophisticated devices with more features and better productivity every few years. When you lease your copier, the lessor will provide you with the newer model before your contract expires. This means that you will get an upgrade for no cost other than the monthly/yearly payment to the company that leases the copier.
The fact that the equipment belongs to the leasing company means that once the agreement is over, you are not stuck with it. You do not have to sell it, and it will not take up unnecessary space. The owner will take the copier back.
Having a lease agreement means that you have also purchased a regular maintenance service contract. This way, the dealer will help you save some money by adding the cost of servicing into the lease’s total price.
So, depending on what kind of copier you choose, the leasing price varies from 50 USD – 100 USD per month for a small copier, 200 USD – 400 USD for a high volume copier, to 800 – 1000USD per month for a high-end copier.
Leasing your office copier comes with certain tax advantages. The payments in the case that have a lease agreement are considered as a pre-tax business expense. That means, each time you make a payment, you can deduct the whole payment. When you buy the equipment, you can deduct only the depreciation value. That is 40 percent of the price in the first year and 25 percent in the following years.
Over the years, we have helped countless customers in purchasing or leasing their office equipment at 1-800 Office Solutions. There is simply no straightforward answer of whether you should buy or lease a copier, and what kind of a lease agreement you should get depends entirely on your company’s needs and requirements. Feel free to contact our specialist to help you find the right fit for you.