How Does Printer Leasing Really Work?
When businesses are looking to purchase a printer or copier, one of the first questions that often comes up is whether to buy one outright or to lease. Some situations may warrant buying a printer or copier, such as a well-established business with well-defined needs. However, in almost every other scenario, leasing a printer or copier may be a wise decision.
The issue for many is that printer leasing has a negative connotation. People tend to like to own their products, so many companies make the mistake of making purchases like a copier or printer without actually knowing the benefits of leasing. Below, we’ll explore some of the reasons that printer leasing is a great option for your business.
Access to the Latest Hardware at a Reduced Cost
Printer and copy machine leases are beneficial because they typically range from three months to five years. This can be particularly useful if your needs change. This is especially true for a business that is just getting started and will evolve over time. A printer that is purchased upfront could result in either overpaying or having to upgrade it later. Leasing printers for small businesses is one of the best ways to gain access to up-to-date technology at an affordable price.
With a printer lease, there are many options that allow for a business to grow.
- The longer the lease, the lower your monthly payments will be. For a small business running on slim margins, this is a huge benefit.
- Many printer leases offer payment options that include monthly, quarterly, and annual payments.
- The leasing service uses the equipment you return as collateral for a new lease. The leasing company can then sell this equipment to another business and use the money from that sale to finance your new lease.
However, as a warning, if the leasing company isn’t able to sell the machine once the lease is over, they will keep it as security against their loan. In other words, they are using your copier or printer as collateral until they can recover their losses by selling off the equipment.
After Your Printer Lease Is Up, You Have Several Options
Once your printer lease is up, you will likely have a few different options of what to do next.
- Buy the equipment and own it outright.
When the business does not need more or less than what the printer or copier is doing, this is the cheapest option.
- Return the equipment and receive no further payments or fees.
If you know what your needs are and want a new printer that either does more or less than the one being leased, this would be the right decision for you. In other words, you know leasing is no longer needed, and the current printer isn’t the right one.
- Lease another piece of equipment.
At the end of the lease, you might realize that more or less is needed, but you’re not sure how much. When you aren’t sure what to do, but you know change is necessary, this would be the option to take.
- Buy a service contract.
This covers repairs while you own your machine, if needed. This is called a “service renewal.” This would be an option that would go along with the buying outright.
Printer leasing is a great way to enhance your printing fleet, but you need to ensure that your printer methods are secure to avoid security breaches and lost data. Learn how to secure your printer by reading our blog.
Tax Deductibles and Avoiding Down Payments
Since printer leasing doesn’t require an upfront cost, it’s usually less expensive than buying upfront when money is the most tight. Small businesses who don’t have much cash on hand or don’t know how long they will need it can benefit greatly from this.
Leases are also often tax deductible: If you lease your copiers through a third party company, this may qualify as an operating expense, which means it could lower your taxable income. If you live in a state that allows this kind of deduction, check with your accountant to see if it applies to you!
Rent-to-own agreements are frequently included in lease agreements for companies that are unsure whether they should make an investment now or later in something like copiers. These leasing options can also help businesses save money in case their needs change quickly.
Again, this option is cheaper than purchasing a printer in the short term. In the long term, the monthly payments will add up to more than purchasing a printer up front, but again, with so much risk involved, it may end up being cheaper anyway.
High-Quality Service Contracts
Service contracts are usually purchased for a fixed period of time, such as one year or three years. These lease terms cover the repair and maintenance of the equipment you’ve purchased so that it will continue to function properly. Service contracts may include parts and labor as well.
Since it normally goes along with a lease, or after a completed lease, the cost of it will be significantly less than if a copier or printer is purchased from another seller and repairs are needed. Think of it like an insurance plan. Insurance will cover the costs of repair after a deductible is met. Without insurance, costs can be in the thousands with no outside help.
The same goes for printers and copiers without a service contract. A typical repair job on a printer could cost more than $500. Most companies don’t have an extra $500 sitting around in case a machine breaks down.
Looking for Printer/Copier Leasing in NYC?
For small businesses, leasing copiers and printers is often a smart business decision. It allows you to make the most of your investment while avoiding the hassles that come with buying new equipment.
At Superior Office Solutions, we’ll handle the maintenance and repairs of your printers and copiers, so all you have to do is pay a flat monthly fee. This gives you more time to focus on running your business instead of worrying about maintaining equipment or paying off debt from other purchases.
Feel free to contact us and discover your printer leasing solution today!
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Superior Office Solutions has been adding a personal touch to the office equipment leasing industry since 1999. With four convenient locations in the tri-state area, we provide world-class equipment and unbeatable service to over 4,000 customers.