Even though there’s a big push towards “paperless” offices, many businesses still rely on trusted equipment, like printers and copiers. In fact, reports show that the global printer and copier market is growing in value, year on year. Clearly, copiers are still valuable. But, when it comes to getting a new copier for your office, you may hesitate between buying or leasing. This guide will look at what a copier lease is, how it works, and some of the benefits of leasing over buying.
What Is a Copier Lease?
Let’s begin with a basic copier lease definition. Just like a car lease or other forms of lease, a copier lease is when you essentially rent a copier rather than buying it outright. During the lease period, which usually runs for a couple of years, you pay a monthly fee to use the copier.
One of the first things to learn about copier leases is that they’re not all the same. There are multiple varieties to choose from, each with its unique way of working. Depending on your budget and needs, certain types of copier lease agreements may work better for your business.
- FMV – FMV stands for “Fair Market Value,” this type of lease essentially allows you to purchase your leased machine at the end of the term. As the name suggests, you’ll only have to pay a “fair price” for the device. It’s a good option for businesses that want to continue working with the same equipment.
- $1 Out – The “$1 Out” lease works a lot like an FMV lease. The only difference is that you only pay a token dollar at the end of the term to officially own your copier outright. During the lease term, you’ll essentially pay off the full value of the machine. Again, this is useful for brands that want the option to officially own their copiers.
- Installment Purchase – The “Installment Purchase” plan isn’t really a lease at all, as you’re not renting the copier. Instead, you’ll be buying it, but paying via installments, rather than a single one-off payment. It’s like a payment plan for businesses that want to stretch the cost of a new machine, perfect for limited budgets.
Other Important Things to Know
The more you know about copiers, the easier they are to use. And as you learn more about leases, it should be more straightforward for you to decide if they’re right for you. Here are a few more must-know facts for anyone who’s thinking about leasing a copier.
It Has Unique Advantages
You might wonder if copier leasing is really worth it when compared to just buying a new machine in one go. Well, there are unique advantages associated with copier leasing. For example, it’s much easier to manage your finances if you only have a fraction of a copier’s cost to pay each month. Plus, many of the best lease deals include service fees, letting you get your copier fixed for free.
Negotiation Is Possible
You might be surprised by how much leasing companies are willing to be flexible and negotiate. Often, they’re able to adjust the conditions of a lease deal to suit your needs, like changing the term, including maintenance, providing insurance, etc. Don’t feel you need to agree to preset conditions; communicate with the leasing agent and get a deal that works for you.
Typically, there are tax benefits if you invest in office equipment, like printers and copiers. These items count as depreciating assets. If you lease a copier, it usually works the same way, as your copier lease can also be classed as a depreciating asset. You could also save a little cash when it comes time to pay those business taxes, thanks to Section 179.
You Don’t Have to Lease the Latest Models
Another common misconception about copier leasing is that only the latest and greatest models are available. But that’s not true. Many companies will offer a broad selection of models for lease, from basic copiers to high-end devices. So, even if you only need a simple black ink copier, you should be able to arrange a deal with a leasing firm.
There Are Risks
So far, we’ve only covered positive elements of leasing a copier, but there are downsides and potential pitfalls. Namely, you might get locked into a deal with an unscrupulous leasing agent with all sorts of hidden fees or costly buyout clauses. That could jeopardize your business in the long term if your finances take a sudden hit.
Copier Lease vs. Buying
Leasing isn’t the only option if you want a new copier. You might prefer to visit a shop or buy one online, but would that really be the best choice? Let’s see some factors in favor of both buying and leasing.
In Favor of Leasing
The main selling point of a copier lease is the money-saving potential. You don’t have to pay a massive fee (upwards of $10,000 for commercial copy machines) and will only have to cover monthly installments, which are far cheaper. This may not matter for big enterprises with mega budgets, but for a small start-up with limited funding, it’s absolutely worth bearing in mind.
Not only that, but leasing also usually comes with some level of servicing or maintenance for your machine. These added benefits can save you even more cash if and when the copier breaks down, gets jammed, or stops working. Plus, you might be surprised to see just how many different models are available to lease, with options for every business and budget.
In Favor of Buying
Buying also has its plus points. Notably, you’ll own your copier 100% right from the start. It then becomes a business asset for your company, and you can resell it in the future to get some cash back before upgrading to another model. Plus, with purchases, there’s no need to go through long-winded negotiations or sign complicated contracts. You just pick a copier and pay for it.
Cover All Your Copying Needs With a Copier Lease Agreement
Leasing a copier is a great way to cut costs and enjoy all the benefits of a copy machine, especially for start-ups and small businesses. It’s easy to do, and trusted copier firms like Kelly Office Solutions are ready to help with copier leasing services for those in Winston-Salem, Charlotte, and Greensboro. Contact us today, and let’s talk about your company’s copier needs.