So you're starting up your own business and you need to furnish the office with equipment. This includes a copier. The question you are trying to answer is whether or not you should lease a copier or buy one. Read on to learn the pros and cons of each.
Buying Your Office Copier
Purchasing it means that you will have full control over it and what you do with it in terms of maintenance. You can keep it for as long as you want or get rid of it in a month if you decide to. You can decide when it is serviced or if it is ever serviced. You will have no contract since it is ultimately your property.
- It's Cheaper Over Time - In the long run, if you purchase the copier outright and upfront, it will be cheaper. This is because you are able to avoid the finance charges. It's like buying a car. If you pay cash upfront, you can save yourself thousands of dollars in interest.
- There's Less Paperwork - When you buy a copier, it's pretty straightforward. You will give a salesperson the cash, they will give you back your change and a receipt, and you will take the copier back to the office with you or they'll deliver it for you. However, with leasing, there is going to be an application where you have to provided financial information and you'll be subjected to a credit check, then you'll have to sign tons of paperwork.
- It's Tax Deductible - Since you purchased the copier for your business, you can deduct the entire purchase cost from your business taxes. However, with the lease, you are only able to deduct the payments that you make for the year.
- There's Depreciation - Similar to other equipment, a copier will lose a bulk of its value after a few years. So if you try to sell a high-end copier when you are done with it, you likely won't get much profit for it.
- It Will Become Obsolete - With technology constantly changing, you can bet that your copier will be out-of-date in a few short years. You are going to invest a lot of money into a copier if you buy it, and it is going to be hard (if not impossible) to replace it as frequently as you would like in order to stay up-to-date with technology.
Leasing Your Office Copier
Most businesses tend to lease copiers, but this doesn't mean that this is the best option for your and your business. A lease can be anywhere from one year to several years, and you will be required to make a set monthly payment until the term of your contract expires. At that time, you can purchase the copier, return it, or trade it in to receive a newer model copier.
- It's Cheaper Upfront - With a lease, you likely won't have to pay money upfront. This means you can get the latest and greatest technology without breaking your budget. This is great for new or small businesses that are limited on cash flow.
- You Know What You Pay - With a lease, you have a contract that states exactly what you must pay every single month in order to keep your copier. This is extremely beneficial for budgeting.
- You Have the Upgrade Option - Once your lease expires, you always have the option to trade your copier in and upgrade it for a newer model that has the latest technology -- again, with little to no upfront costs.
- It's More Expensive in the Long-Term - While it is cheaper in the short-term, it will cost you in the long-term because of interest charges.
- The Terms Can Be Strict - With a lease, you are a signing a contract, and it isn't easy to get out of one, regardless of your circumstances. There are often stipulations for you to adhere to certain maintenance requirements set forth by the leasing company, which can get costly.
Ultimately, the decision is yours and is based on your individual situation and needs.Contact a company like CopyTex Business Solutions LLC to learn more about leasing and purchasing.Share