Renting or buying a photocopier can be a big decision for any business. Rentals pose a much smaller monthly outlay while an outright purchase involves letting go of a decent amount of capital.
Have you had enough of running to retail stores to pick up printer and copier refills?
Imagine if your printer told our team when you were running low and we had top ups delivered to you ready for use.
When looking to make this decision there are several considerations which may sway you either way. In this blog I have outlined the 5 key points for consideration below.
Who owns the copier?
Technically in a rental situation, the copier is still owned by the renting company for the duration of the agreement until you pay the final 3 payments past the contract term.
A lease is the same, still owned by the leasing company and will roll over until you have paid out the agreement to ‘own’ the device. In this case, often companies will offer for you to buy the machine for $1.
Depreciating assets & deducting expenses
There is a clear advantage to leasing/renting when it comes to depreciating an asset of a large machine. The entire asset is a deductible expense straight away, since you don’t own the machine it is not a depreciating asset. When you purchase, it is the opposite and you must have a depreciation schedule for the device.
Assets Vs Liabilities
Leasing & renting is not considered to be a liability under a typical scenario, this allows you to have more credit available to grow your business.
A point that is often overlooked is due to a rental being smaller and the outright cost such a high upfront amount you can afford to get a much bigger device. This then allows you to get better features that will increase productivity, reduce downtime, give you greater efficiencies and opportunities.
Whether you lease, rent or buy you will need a service agreement, this covers you for machine breakdowns, toners, parts etc. What people don’t realise is that you have far better bargaining power leasing or renting than you do buying a device outright. In short, you will pay more per copy for buying outright than you would renting or leasing.
Ultimately for each business, the decision will be different, taking into account the above however will hopefully steer you in the right direction. If you still have questions about the best way to purchase copiers and printers chat to our team of experts today. We’d be happy to help!