Copier Lease vs. Buy: Which Is Better for Your Business?
THE COPIER LEASE ADVANTAGES
Buying a copier outright is a one-time capital investment that offers long-term control and can be more economical over the full lifespan of the machine for some businesses.
- Long-Term Savings: While the initial cost is high, purchasing the machine can be more cost-effective over time because you eliminate monthly interest and financing charges associated with leasing.
- No Contractual Restrictions: When you own the copier, there are no usage limits or overage fees, giving you the freedom to print as much as you need without penalty.
- Full Ownership and Flexibility: You have complete control over the equipment. You can choose your own service provider, modify it as needed, and sell it for resale value or trade it in when you decide to upgrade.
- Potential Tax Benefits (Depreciation): As an owned asset, the copier can be eligible for tax deductions through depreciation over several years, which reduces your taxable income.
- No Ongoing Payments: After the initial purchase, you have one less monthly invoice to process.
KEY FACTORS TO CONSIDER
The best choice depends entirely on your business's financial situation, growth trajectory, and printing needs.
Usage Volume and Lifespan
A commercial copier is designed to last anywhere from 5 to 7 years.
- Leasing is often best if you anticipate needing to upgrade your technology frequently (every 3 to 5 years) to stay current with new features and security standards.
- Buying is better if you have a stable, high-volume need and plan to use the machine for the entirety of its life (5+ years) to maximize your return on investment (ROI).
Cash Flow and Budgeting
- Leasing preserves working capital by transforming a large expense into smaller, predictable monthly OpEx (operating expenses).
- Buying requires significant initial CapEx (capital expenditure), which might strain a small business's budget.
End-of-Term Options (Leasing)
Be aware of the type of lease you sign, as they determine what happens at the end of the contract (typically 1–5 years).
- Return the Copier: Hand the machine back and terminate the lease.
- Upgrade to a New Copier/Lease: Trade in the old machine for a new model.
- Purchase the Copier: You may buy the copier at its current Fair Market Value (FMV), or for a predetermined $1 buyout fee if you signed a capital lease.
MAKING THE RIGHT DECISION
Choosing between leasing and buying is a strategic decision that goes beyond the price tag.
Consider Leasing if:
- You want low-to-no upfront cost.
- You need to maintain predictable monthly expenses.
- Your business relies on having the latest technology and needs to upgrade frequently.
- You prefer a bundled solution that includes maintenance and toner.
Consider Buying if:
- You have the upfront capital for a large investment.
- You are focused on the lowest total cost over the long term (5+ years).
- Your print volume is high, and you want full control without usage limits.
- You want the equipment to be a business asset for depreciation purposes.
Ultimately, performing a Total Cost of Ownership (TCO) analysis that factors in the purchase price/lease payments, maintenance costs, and supplies over the machine's expected lifespan will provide the clearest picture for your business.
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