Choosing the right office equipment is a major decision. There are so many brands, technologies and features to choose from.
Once you have decided which product best suits your needs, there is still one important decision to make: should you buy or lease your office equipment?
This question seems to arise time and again whenever an important business decision needs to be made. You may also have considered the pros and cons of buying or leasing your office space.
As no two businesses are alike, there is no single right answer.
It is impossible to say that buying is always the right choice or that leasing is always the best option. However, there are some important questions you should ask yourself before making a final decision on whether buying or leasing a photocopier is best for your business.
Should you buy office equipment?
First, let us consider the advantages and disadvantages of buying office equipment. This equipment will play an important role in your operations, so it is essential to make the right decision for your particular organisation.
One of the main benefits of buying is ownership. Once you have paid for the equipment, you own it, which means that all decisions are entirely yours. If you wish to customise or modify the equipment, the choice is yours.
As the owner of the equipment, you can sell it whenever you wish. This allows you to recover part of the original cost and invest it in new, updated office equipment. Purchase costs can often also be claimed for tax purposes, but you should consult an accountant to determine whether the tax benefit will be worthwhile for your business.
Of course, there are several reasons why buying your office equipment may not be the right decision.
The initial purchase cost is higher. Leasing allows you to spread smaller payments over time, which may be more favourable for the budget or cash flow of businesses with limited funds. Financing options are often available to companies that choose to buy, but the interest costs may not be something your business is willing to take on.
Routine maintenance should always be considered in addition to the original purchase cost. A manufacturer’s warranty may cover defective parts, but you may also be required to take the device to a regional facility or even send the equipment back for repairs.
A photocopier or printer has many moving parts and will require regular servicing and maintenance beyond the occasional replacement of a broken component. Will you pay for this service based on time and materials, or purchase a service contract? Many buyers prefer the predictability of a service contract, but either way, this is a cost you need to budget for.
Finally, if technology changes and leaves your equipment severely outdated, you may be left with equipment that cannot be resold or repurposed. This is unlikely to happen quickly, but it should be taken into account if you plan to keep your equipment for several years.
Should you lease office equipment?
Choosing to lease office equipment has its own advantages and disadvantages for your business.
One of the main reasons to consider leasing is the initial cost—or rather, the lack of one. Instead of having to pay a large lump sum, you can spread the payments over several years. If managing cash flow is a concern for your business, this may be the best way to obtain new equipment without making significant changes to your budget.
Lower lease payments may give you access to a wider range of higher-end equipment that would simply be unaffordable if the full cost had to be paid upfront. If you want the latest technology to support your business, leasing could be the best way to obtain it within your budget.
Finally, the equipment belongs to the leasing company. Depending on your perspective, this could also be a disadvantage. You cannot sell the equipment to recover costs, but neither do you run the risk of being left with it once the lease term ends.
If you plan to upgrade your device regularly, leasing may be the right solution for you. Dealers are often willing to help you transfer your lease to a new agreement for a new device before your current term ends.
Lease agreements generally require you to purchase a regular maintenance service contract for the device. The dealer will often help you save some money by including this in the total price of the photocopier or printer. The peace of mind and predictable billing provided by a service contract are valuable to almost any organisation.
With all these benefits in mind, it is time to consider the drawbacks of leasing your office equipment.
Although your monthly payments may be lower when you choose to lease, the total cost over time is actually higher than buying in many cases. Furthermore, you will not own the equipment at the end of the agreement.
You should also pay close attention to the lease terms you accept. Choose a reputable company that offers flexibility
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