While many businesses benefit from equipment leasing, there are instances when purchasing outright is the more cost-effective and smarter choice. To help you decide what works best for your business, let’s look at the key factors worth comparing before you choose.
Purchasing vs. Leasing Copiers: Making the Right Choice for Your Business
The vital factors include:
- Amount funded
- Purchase rate
- Yearly depreciation
- Inflation and Tax Rates
- Device use
- Monthly lease expenses
- Maintenance and ownership costs
Why Leasing Equipment Works for Many Businesses
An equipment lease is often the ideal choice for devices that need regular upgrades, such as electronics and computers. Leasing allows you to access the latest technology with low upfront costs and predictable monthly payments that fit your company’s budget. This flexible payment plan also opens the door to a wider range of equipment options. In short, leasing lets businesses use high-quality devices that might otherwise be too costly to purchase outright.
The Hidden Costs of Equipment Leasing
However, leasing equipment comes with interest payments that can increase the total cost over time. In some cases, it may even end up costing more than buying the machine outright, especially if you choose to purchase the equipment at the end of the lease term.
Some lessors also set longer contract terms that can add to your expenses if the lease extends beyond your actual needs. In these situations, you might still pay monthly fees or even storage costs for equipment that’s no longer in use.
When Buying Equipment Makes Sense
On the other hand, buying equipment outright is a solid choice for businesses that need full customization. Ownership allows you to tailor the machine to your exact requirements, something leasing agreements rarely offer. Plus, you’re not limited by lessor restrictions, giving you more flexibility and control over your investment.
Advantages of Purchasing Equipment
Purchasing equipment, contrary to what many believe, allows businesses to handle issues immediately without waiting for approval from a lessor or leasing specialist. Along with depreciation tax benefits, you can also recover some cash by reselling the equipment once it’s no longer useful to your operations.
Drawbacks of Buying Equipment
However, like leasing, purchasing has its drawbacks. The biggest one is obsolescence. When you buy equipment, you’re stuck with it until you can afford to replace it with a newer model. On top of that, maintenance and repair costs can weigh heavily on your budget. Many companies allocate around 1% to 3% of their sales just for maintenance, and the actual expenses often rise depending on equipment age, usage, warranty, and quality.
Making the Right Decision for Your Business
In a competitive market with various tax incentives, these factors are enough to make many businesses think twice before purchasing equipment outright.
If you’re planning to get copiers for your office in Atlanta, you can choose to buy copiers or lease copiers in Atlanta. Clear Choice Technical Services gives you flexible options to get the copier that fits your business needs. Contact our local copier leasing services team today and let us help you find the right solution for your office.
If you’re located in or around Atlanta, call us at (404) 369-0911. Our team for copier leasing in Atlanta is ready to assist you. If you also need copier repair services in Atlanta, you can reach our repair specialists at the same number for quick and reliable support.
