Are you thinking about leasing a copier? If yes, this guide is intended to be a resource to help ensure you find the best copier lease for your budget.
When considering an expensive asset like a copier it is important to consider who will be in charge of caring for the machine which includes: performing maintenance, replacing consumables, networking users, and overall troubleshooting. Having the right technical people on staff will be crucial in maintaining the health and longevity of a purchased copier.
The matrix below provides a brief outline of the different pros and cons of both leasing and purchasing.
As a rule of thumb, purchasing a machine is a great option if the organization has excess cash and a technical staff member to perform maintenance on and service the machine when it malfunctions. Outright ownership of the machine can save money over leasing since the machine can be used for many years. However, purchasing a copy machine requires a large upfront cash investment and because of this many organizations would rather allocate cash to other areas of the business. Another important consideration in purchasing a machine is who will be responsible for maintaining the machine.
When considering an expensive asset like a copier it is important to think about who will be in charge of caring for the machine which includes: performing maintenance, replacing consumables, networking users, and overall troubleshooting. Having the right technical people on staff will be crucial in maintaining the health and longevity of a purchased copier.
The cost of ownership tied to owning a copier oftentimes isn’t worth the headache and expense. Outright ownership of a copier can be expensive if the machine malfunctions. Copy machines are complex with many moving parts. Regular maintenance is important for extending the life of a copy machine.
Organizations without a technical employee on staff to service the machine should strongly consider leasing due to the amount of time and expertise needed to perform the adequate maintenance necessary to keep the machine working. Leasing a machine also means you have someone to call for help rather than dealing with the cost and inconvenience of ownership by yourself. Many businesses prefer leasing a copier machine instead of purchasing one.
Always, always, always, take advantage of repair and maintenance coverage offered with your lease. Typical lease agreements include coverage for labor and parts needed when the machine malfunctions due to normal usage and aging equipment. Determining what is covered and what is not covered depends on the workload placed on the copier. Workload can also be thought of as the amount of copies or prints a machine produces in a typical month. For this reason it is important to have an estimate of monthly copy/print volume.
Leasing equipment helps save money because instead of spending a large sum of money all at once to purchase a machine, businesses can lease equipment for a low monthly amount resulting in lower capital expenditures. An important factor to consider is most lease payments can be deducted as a tax expense, further reducing the overall cost of leasing. When done correctly, leasing a copier ultimately preserves capital and businesses from the high cost and stress of equipment ownership.
In most cases, businesses financing equipment are allowed to deduct up to $500,000 a year. This means that with the proper structuring, financing can be a tax deductible for the business. Learn more about this here.
In addition to helping businesses avoid the expensive cost of ownership, leasing also makes it fast and easy to upgrade to new technology while replacing old, broken, and outdated equipment. This can be especially convenient due to the fact that the leasing company will deliver and install, configure, and network a new machine while removing the old machine all at the same time.
Important and often overlooked is establishing an emergency repair plan. Having an emergency plan in place prior to needing it will save a lot of time, money, and headache. Prepare for what happens in the event of an after hours emergency when immediate repairs are needed.
There are three main factors that can be negotiated. The three factors are are:
The type of copy machine being purchased or leased is an important factor in calculating cost. Machines designed to handle extremely high output of copies/prints will cost more than machines designed for less output. The output of the machine is the key to finding the copier, at the right price.
The length of the lease is equally important in calculating the cost of the machine. The reason for this is because longer term leases are rewarded with a lower rate. Lease terms typically range from 1 to 3 years. Also available are shorter 6 month, 3 month, and month-to-month terms which will be more expensive.
Whether you purchase or lease a copier its a good idea to define what type of coverage is included for regular repairs, ink, toner, and maintenance. An emergency plan in the event that repairs are needed after hours should also be outlined.