Photocopier Lease or Buy
Should you Lease or Buy your next Photocopier?
There are many questions to ask when looking at getting your office a new photocopier. Once you’ve chosen the brand, model and specifications, the next question is likely to be the purchasing options.
Benefits of Leasing Photocopiers
• Up-to date technology – Like with leasing a car, by going down the leasing route, you are able to get the latest technology at an affordable price. With leasing, you are able to upgrade your devices every 3-5 years and since technology is changing so quickly these days, 5 years is actually a long time!
• Predictable fixed repayments – Leasing enables companies to budget more effectively as you receive an invoice for the same amount every month (or quarter).
• No up-front fee – With no up-front fee, it is a great option for companies that are short on cash or have other business expenditure to consider too.
• Don’t own equipment – At the end of the lease, you can either pay the difference, give the equipment back, or trade it in for a newer model. You’re not lumbered with equipment to dispose of or sell on.
Negatives of Leasing Photocopiers
• Due to interest, you will end up paying slightly more in the long run
• You have to pay for the duration of the lease
• If you have signed up for a 3-year lease, you have to pay a settlement fee if you decide to stop using the equipment
Benefits of Buying Photocopiers
• No 3-year minimum trading required – Leasing companies require 3 years trading history before they can allow a lease to go through. With no leasing companies’ involvement in purchasing outright, companies that have not been trading for 3 years are able to get their photocopier.
• Choose maintenance contract separately – Some companies like to have full control of their machine. Once purchased, they are able to choose their service company separately. It is important to note however, Managed Print Service Companies, like Midshire provide servicing and leasing as part of one package.
• Overall cheaper in the long-run
• Because you aren’t paying interest, your overall spend will be less than leasing.
Negatives of Buying Photocopiers
• Large up-front payment required – You will have to pay the full price of the photocopier, upfront. This can vary from around £1,000 up to £15,000+, which is often unachievable for many companies.
• Left with old, unreliable equipment – You run the risk that your photocopier might be out of date within a few years. Not just this, but as machines get older, they become increasingly unreliable and costly. Therefore, you will end up spending more on service calls and parts. As machines get older they can also slow down and use more energy, increasing the cost of your electric bills!