Buying vs. Leasing

Let’s assume you have picked the perfect Copier/Document Solution System you want for your business.  Should you purchase or lease it? 

It used to be harder to answer this question because there were so many variables to consider, but with new and improved leasing options, rapid technology advancements, and a more accelerated copier depreciation schedules, leasing has made its way to the forefront as the best choice for the vast majority of businesses these days.   A machine worth $8,000 at purchase can be expected to be worth about $2,500 in three years.

The single biggest reason people choose to purchase instead of lease is that they don’t understand the benefits of leasing and how it works.  With a lease, you can keep up with the current technology, and you have flexibility at the end of a lease term – you can switch to an upgraded machine, or one that meets your needs more closely.

Over the term of a lease, you can verify that projected usage matched your actual usage, and make adjustments as needed.   Many companies either overestimate or underestimate their needs, especially with a first copier or after a modification in business structure. 

It compares quite well to the advantages of financing or leasing a vehicle. 

The first advantage is you maintain the use of your cash.  Instead of plopping down a big chunk to purchase your system you can work the lease payments into your monthly budget while putting your cash toward other productive uses such as marketing and customer acquisition efforts. 

Second, just like the depreciation that takes place the minute you drive a car off the lot, your copier/printer system acts in the same way.  Not only does the system begin to depreciate, but a technology gap begins to widen as time goes by.  If you pay cash for your system, you are rapidly using up that resource (cash) while the value of your machine declines.  With a lease, you are only paying for the actual usage of the machine and in the end you can just give it back and begin again with updated technology.  The tax benefits remain the same either way. (Disclaimer:  We are not tax consultants.  Please consult a qualified tax advisor for tax advice)

At Imperial we know making he decision between buying or leasing a new system or machine can be tough, frustrating, and time consuming.  A simple call to one of our representatives can help reduce that frustration while freeing up some valuable time.