Buying VS Leasing a Printer. Discover Which Solution is Best for Your Business
- February 26, 2021
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Buying vs leasing office equipment is a frequent question that pops up in the mind of many business owners – no matter how big or small the company – when thinking of upgrading or installing new technology in their office.
Every business owner is budgeting and balancing their books monthly, weighing up expenses to the benefit of their employees and their business. Printers can be costly and with additional, new tech options, they can cost up to tens of thousands depending on your needs and industry – the more features, the more costly.
It is not an easy decision. That is why weighing your options can be helpful in the long run.
Buying office equipment can save you in the long run, but what are the benefits of leasing? In this blog post, we explore the upsides and downsides of both.
The benefits of purchasing a printer
Less Expensive in the Long Run: In the long run, you won’t be paying interest on a leased item, making it ultimately less expensive.
Maintenance is in your hands: Depending on your contract this can be filed under the PRO list. You will want to consider maintenance costs on top of purchasing costs as leasing contracts usually include maintenance costs.
Tax Incentives: As a business owner you are entitled to deduct the cost of any purchased assets.
The downside of purchasing a printer
High Upfront Costs: The cost of buying outright can be expensive. This may tie up lines of credit or money that can be reinvested back into your business – costs like marketing, product development, business expansion, and more.
Unexpected Maintenance Costs: The maintenance and upkeep of a printer are yours once you own it. This is part of the freedom of owning, however, it can come with unexpected maintenance costs not included in the initial startup.
Outdated Equipment: Technology becomes outdated quickly. Depending on the industry you’re in, a growing, small business may need to refresh its technology every year or two. Purchasing office equipment upfront often forces you to either be stuck with equipment that is not up to par or to have to sell equipment at a fee that is way less than what you purchased it for.
The benefits of leasing a printer
Smaller Upfront Costs and Manageable Monthly Expenses: When leasing a printer, you often have to pay nothing upfront and your monthly fee is set allowing you to budget accordingly. This will allow you to invest money in places that will help you grow your business.
Maintenance Coverage: Most leases include a maintenance and repair contract. This takes the stress off of you of having to worry about sourcing printing repairs and allows you to rely on a third party, provided by your leasing company, to cover your maintenance.
Up-to-date Equipment: Technology is constantly changing. The shelf-life of tech is similar to that of milk – something fresher is always on the horizon. Leasing allows you to pass the burden of out-of-date technology to the company that is leasing you the equipment and refresh your equipment every few years.
Trial and Error: acquiring the best equipment for your business: Leasing enables you to try products short-term and decide if they are right for your business. There is nothing worse than purchasing a new piece of equipment and realizing that no one in the office uses it and that you need something different.
Keep up with the Competition – Leasing allows you to get your hands on costly equipment that may be otherwise unaffordable to your business. This enables you to keep up with your larger competitors without draining your bank account.
The downside of leasing a printer
More Expensive in the Long Run: Leasing office equipment is almost always more expensive in the long run. For example, a printer may cost $5,000 and last 10 years with very little maintenance. Leasing, on the other hand, may only cost $200 a month, however, in two years at $200 a month you have already spent close to $5,000 on the same printer.
You are Bound by a Lease: If you purchase a piece of office equipment and then realize you don’t use it, you always have the option to sell it and lose a bit of money. If you sign a two-year contract on a printer you are obliged to pay that monthly fee for two years regardless if you use the equipment or not.
Credit Checks and Paperwork: Taking out a lease involves paperwork and often credit checks. Although this isn’t usually an issue, it does involve time.
There are a few simple rules that may help you decide whether to lease or buy as both have their advantages and disadvantages.
If your equipment requirements are small and you have the capital, then purchasing may be the option for you. It is more straightforward and you’ll save money in the long run.
However, if you are a startup and are unsure of the equipment that is right for your business, leasing might be up your alley. A large sum of cash can often be better used somewhere else – you can’t lease employee capability.