One of the biggest business decisions you will need to make is whether you want to lease or purchase your office equipment, software, or copiers and printers. See a full breakdown on both leasing and purchasing to find out which one is right for you.
When the time comes to get a new copier, one of the biggest decisions you’ll need to make is whether you want to lease or purchase. For some, it can be a very daunting decision, but with the necessary information, you’ll be able to easily decide which option works best for your business.
Why Purchase?
People that purchase typically do so because they prefer not to have regular payments and they do not plan to upgrade their equipment in the near future. This can work well for businesses not anticipating growth or any changes in processes. When you keep the same machine, over time it lacks the latest technology busy, thriving businesses rely on to do their jobs efficiently. With each new line, manufacturers upgrade copiers with new features that help to automate labor-intensive administrative processes and make the equipment more reliable.
People also purchase because they want to bypass the extra costs associated with leasing in the long run. Just keep in mind that purchasing may actually end up costing more- in time and money.
Manufacturers stop making parts for equipment once a model has been on the market for several years and newer models will use improved toner formulas and cartridges. This results in service companies having to pay more to special-order supplies and they pass that cost on to you, the customer. These costs add up over the life of your machine. Also, your service vendor would eventually notify you that they can no longer support your machine at all. You could choose to keep your copier at that point and chance not having a service contract, but older equipment regularly needs more maintenance and parts.
Also, most purchase customers plan to sell their copier when they are ready for new equipment, but copiers depreciate fast and cost significantly more to maintain. That combination makes them a hard sell.
While purchasing may still be the best option for some, the majority of businesses opt to lease.
Why Lease?
If you plan to be in business for more than a few years and expect your needs and processes to evolve with time and growth, then leasing is probably your best bet. When you lease, you can upgrade to newer, improved equipment at the end of each term, usually while staying in the same price range. Just as the latest phone or gadget decreases in cost over time, so does the latest in office equipment. This typically makes it possible to have the best technology at approximately the same cost as the last model.
Copiers have become crucial assets for businesses, giving way for automated functions, dependable archiving, and eliminating manual processes. Efficiency is key. While it’s no secret that, in terms of the machine cost itself, you’ll pay a little more over time with a lease, but does that really compare to how much you save in admin time and labor over the life of the lease? Employees can stay on task longer by not having to dig through piles of paper to separate their prints from others’. Frequently used documents like letterhead or cover pages, can be quickly printed on demand by saving the templates in the copier. Employees can schedule when to print things, or print several things throughout the day and have them all come out at once when they’re ready for them. Newer equipment will also have less downtime than older, more worn machines. All of this helps keep workers productive.
How does leasing office equipment work?
If you deal with a company that does in-house leasing, like RJ Young, you can customize the length of your lease to fit your needs, and have the ability to make adjustments to your contract down the road, if needed. Like any lease, the longer the term length, the smaller the monthly payments, since you’re spreading the payment out over a longer time. Most people are eligible to upgrade a year or so before their term ends. When you upgrade, your old machine returns to the company to be replaced with the new model you choose after working with your Sales Specialist. Your Specialist works with you every step of the way, ensuring that your contract is set correctly and you have everything you need.
KEY POINTS AT A GLANCE:
Purchasing
- No monthly payments
- No credit check required
- No restrictions – Keep the machine as long as you like and paint it orange (if you want)
- Cost of ownership increases as machines ages
- No flexibility – Difficult to change with your business
- Eventually will be unable to obtain parts or service
Leasing
- Flexible budgeting: It’s easier to budget a monthly payment than a large upfront sum, and in-house leasing offers customized agreements
- Maximum productivity: Upgrading keeps you current with technology and functionality
- Security & Compliance: Newer models have improved security features and are more in line with audit requirements
- Reliability: Newer models have improved durability, and accessible service and supplies
- Baggage free: No depreciating value on your assets, or worries about what to do with the copier when you don’t want/need it anymore (copiers can be impossible to give away)
- Less hassle: Upgrading eliminates the qualms of service issues for old machines
- Money: Monthly payments typically stay in the same, or lower, price range when you upgrade
Most companies choose to lease as they always have the latest technology with flexible options, minus the hassle that can come with owning your equipment. And, as you can see, leasing isn’t as scary it may seem and can come with perks you may not have been aware of.
For more information on leasing an RJ Young copier or machine contact us today.