This is the age-old question among business owners purchasing a new copier: should I buy or lease? The answer depends on factors like your business goals, needs and budget. Let’s examine the pros and cons of both leasing and buying, and how they can impact your business.
Leasing a Machine
Technology is changing constantly. Leasing allows you to keep up; you can easily upgrade to the latest technology every few years. Leasing can allow smaller businesses to acquire technology that they might not otherwise be able to afford. Pre-determined payments offer budget stability, and leasing often requires little or no down payment so businesses with modest cashflows can acquire current technology without a major initial expense.
On the flip side, however, if you find out that down the road your copier no longer suits your needs, you still may have to make payments for equipment you no longer use. This can happen, for example, if your business experiences a sudden downturn or a period of rapid growth. Lease agreements can also have hidden end-of-lease costs, like removal or decommissioning charges, which can come as a surprise.
Buying a Copier
When you buy a machine you own it; there’s no lease agreement, and you are not tied to it long-term. As a general rule, the purchase of a copier is less expensive than leasing. And, because you own it, if your needs change, for example, like needing to upgrade to a higher-volume machine, you can sell your copier to recoup some of your costs.
However purchasing could tie up short-term cashflow making it difficult to finance other expenses. When you do sell, you may find your investment has depreciated in value.
There are benefits to both leasing and buying depending on your company’s unique situation. The best option is to align your decision with your organizational goals. Be sure to do your research and weigh the pros and cons to make the best choice for your business!