Should You Buy or Lease Your Next Copier?
Monday March 12, 2018
One of the first questions many business owners ask when looking for a new copier is, “should I buy or lease?”. The answer is subjective and depends on your business goals, needs and budget.
Here are some of the differences between leasing and buying and how they may apply to your business.
Leasing Your Next Copier
Technology is constantly evolving. Copiers just a few years old lack many features found on newer models and leasing allows you to take advantage of the changes. Leasing allows you to easily upgrade every few years giving small businesses the opportunity to adopt technology that they otherwise might not be able to afford.
With regular lease payments, your budget will be predictable which can help your cash flow. Leasing often doesn’t require a down payment so if you have cash flow issues, you can acquire the technology you need without dipping into your reserves. From a tax standpoint, leasing offers the benefit of a straight business expense deduction meaning there’s no need to deal with capitalization and depreciation issues. Plus, because you do not own the machine it’s not carried on your books as a liability.
Depending on your lease terms you may be locked into payments even if you no longer need the equipment, whether your business needs change or you grow. There can also be hidden costs at the end of the lease which can surprise you, including hefty fees to remove the device.
Buying Your Next Copier
When you buy a device you own it. It’s often less expensive than leasing and you’re not tied to a lease contract. This can be good if you’re growing and your needs may change. Because you own it, you can sell and upgrade at any time recouping some of your investment. Purchasing your copier will give you a write-off that can help with this year’s taxes.
However, purchasing may involve financing, which could impact your cash flow making it difficult if you need to make any additional capital expenditures. When you no longer need the device you may find it has less value, and if it’s older than three years, the technology may be out of date.
There are benefits to both traditional leasing and buying. It all comes down to your needs, goals and budget. At Cartridge World we’ve created different programs to help serve different areas of printing. Specifically, our Why Buy a Printer? Program, Printer Exchange Program and traditional printer & copiers will give you the options you need when choosing the right print strategy for you. Regardless of your printing needs Cartridge World has a solution for you, contact your local Cartridge World today to learn how we can best serve you today!