Should You Lease or Buy Your Next Printer?
Friday August 3, 2018
If you've been tasked with updating your print environment, you're probably wondering whether you should purchase or lease your next printer. Both options have pros and cons and it really depends on your specific needs and wants.
Here are the pros and cons to help you reach the best decision for your situation.
There are two basic types of leasing options available: operating leases and capital leases.
- Operating Leases: Most businesses choose an operating lease because it's less costly. Basically, you're renting a piece of equipment so you never own the asset. If you don't want the hassle of owning and always want newer technology an operating lease is a good choice.
- Capital Leases: Sometimes called $1 buy out leases, capital leases are less common. It's more of a loan than a rental so the interest and principal are going toward the price of the printer, and the printer is an asset on your balance sheet. The monthly cost for a capital lease is higher. If you want to purchase a printer, but don't want to spend the entire amount up front, a capital lease is a good choice.
Leasing Pros and Cons
There are both pros and cons to leasing. These include:
- Leasing avoids technological obsolescence.
- Low upfront costs.
- There is no resale or disposal cost and most leases include maintenance plans.
- You may actually spend more over a lease than the price of the equipment.
- If your needs change you may not be able to get out of your lease.
Buying Pros and Cons
Like leasing, buying offers both pros and cons. These include:
- Buying is less expensive.
- Because you own it, you can, at any time sell the printer to recoup some of your expenses.
- When you buy a printer, no contracts are necessary.
- When you own the equipment, you can choose the repair technician of your choice.
- Initial expense
- When it's time to replace your equipment, you need to come up with the entire purchase price up front.
There are tax implications for both buying or leasing printers. It's best to discuss these with your business's accountant. Ultimately the decision to lease or buy comes down to your operational and cash flow needs. Not sure what option is best for your business? Contact a Cartridge World representative today to start the discussion, our Why Buy a Printer? Program may be the perfect hybrid program to meet your needs!