Despite the digitization of many documents, most modern businesses still need a printer/copier in their offices for daily operations. But whether you choose to buy or lease that printer can have a significant impact on your budget, your operations, and your overall efficiency in the workplace. Which option is best? Keep reading for a comparison of the pros and cons of buying or leasing a copy printer in Anchorage, AK.
A Look at the Basics
Buying a printer or copier means that you’re purchasing the equipment outright; you own the device and are responsible for all associated costs. This can include not only the consumables your printer will use, but also the costs of maintenance, repairs, and eventual replacement of the machine when it’s outlived its usefulness.
Leasing, on the other hand, is more like renting it for a specified period of time. You’ll make monthly payments on the machine and at the end of the lease term, you may have the option to buy the machine, return it, or upgrade to leasing a newer model.
Upfront Costs and Financial Impact
One of the most significant advantages of buying is the ability to avoid long-term financial commitments. You simply pay a lump sum upfront when you buy the printer or copier. Of course, this can be a fairly large lump, which can be difficult for some businesses to handle all at once. However, it also means you won’t have to worry about ongoing lease payments, potentially freeing up your cash flow for other business needs.
Leasing offers the benefits of a lower upfront cost, which can be an attractive option for businesses that have limited budgets or simply want to preserve capital. Instead of that large initial payment, you’ll make smaller monthly payments that are spread out over the term of the lease. This can be an especially good option for startups, which don’t typically have a lot of capital to spend.
Maintenance and Repairs
When you purchase your printer or copier, you have sole responsibility for the machine’s maintenance and repairs. This can be a bit of a double-edged sword; while you’ll have the freedom to choose service providers and control the costs more directly, unexpected repairs can leave you with significant expenses that you weren’t planning on. Additionally, as the equipment ages, it will need repairs more frequently, increasing the total cost of ownership.
Leasing, on the other hand, often includes maintenance and repair services as part of the contract. This means that if the equipment breaks down or requires servicing, the company you’re leasing it from will handle it, typically at no additional cost to you. (There can be exceptions to this, so make sure you fully understand the terms of your lease agreement.) Having these services included can provide peace of mind that no unexpected costs will arise regarding your machine, and can reduce the burden on your IT department, allowing them to focus on tasks other than repeatedly fixing printer troubles.
Technology and Upgrades
When you buy a printer/copier, you own the machine until you decide to replace it. The benefit of this is that, so long as the printer is meeting your needs, you can use it for several years without requiring an upgrade. However, with technology constantly evolving, it also might mean that you’ll be stuck with an outdated piece of equipment that lacks valuable features and functions, which could improve your office productivity.
In this regard, leasing offers the benefit of upgrading your equipment more often without significantly increasing your costs. At the end of any lease term, you can choose to lease a newer model with the latest technology, ensuring your office is always up to date and using the most efficient tools available.
Tax Implications
Any time businesses make a significant purchase, it’s important to consider the tax implications of that expenditure. Purchasing your office equipment can provide tax benefits through the ability to write off depreciation. The cost of the printer/copier can be deducted over its lifespan, reducing your taxable income. Additionally, under certain conditions, you might be able to take advantage of certain deduction types that allow you to deduct the entire purchase price of the equipment in the same year it’s purchased. Be sure to consult with a CPA regarding these potential tax write-offs.
Don’t assume that leasing excludes you from tax benefits though! Lease payments are generally considered to be business operating expenses and can be fully deducted from your taxable income as a business expense. This can provide an immediate tax benefit, particularly for businesses that prefer to deduct expenses as they occur, rather than spreading them out over several years.
Long-Term Costs
While we’ve already discussed the comparative benefits regarding upfront costs, it’s also important to consider the long-term costs of buying versus leasing your office equipment. In the long run, buying your printer/copier is usually more cost-effective, especially if the equipment has a long lifespan and doesn’t require frequent upgrades. Once that upfront investment is made, the only ongoing costs are maintenance, repairs, and supplies—and you’ll have to pay for that last one regardless of whether you’re buying or leasing. Over time, this can add up to significant savings when compared to the cumulative cost of leasing.
Deciding whether to buy or lease a copy machine in Anchorage, AK, will depend on many factors, including your available funds, your printing needs, and what your long-term plans are for your business. It’s important that you consider all of these factors, as well as the pros and cons we’ve mentioned above, to guide you through making this decision. If you’d like further assistance deciding between buying and leasing your office equipment, we invite you to reach out to us at Arctic Office Products. Call or stop by our location today to speak to an expert and explore your options—not only in regards to buying and leasing, but in regards to the type of equipment available for your business’s printing needs.
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