Photocopiers: To Lease or Rent?
Your questions answered here.
The main differences between leasing and renting a photocopier boils down to flexibility and cost. Lease agreements tend to be longer-term and less flexible than rental agreements; the extra flexibility of renting can come at a premium though.
What is the difference between leasing and rental?
Generally speaking, leasing is a better option if you know you’re going to need a copier for a long period of time, but don’t want the initial capital expenditure of buying a photocopier outright. If you’re an established business or know that you’ll need regular and consistent copying functionality, over a sustained period, leasing could be the best option for you.
If you choose to rent a copier instead, you’ll benefit from a shorter term agreement and more flexibility to upgrade and downgrade your equipment. Renting is ideal for businesses who don’t want to be tied in to lengthy agreements. If you run projects that vary in terms of the type and volume of copying required, renting could also be a better option for you.
What is a photocopier rental?
Photocopier rental agreements tend to be month-to-month, with 30 day notice periods. This is fantastic if your business has different copying requirements each month. A rental arrangement also allows you to stay bang up-to-date with the latest advancements in photocopier technology.
With renting a photocopier, you can generally add maintenance packages to the agreement which will cover you for repairs, servicing and the general upkeep of the equipment.
With this extra flexibility comes a higher price though. In fact, if you end up renting photocopying equipment over a sustained period, it’s highly likely that you’ll end up paying more than if you’d just bought the equipment.
What is photocopier leasing?
Photocopier leasing agreements can range in timescales, however most are between 12 and 60 months. If your business has fairly consistent copying requirements and you know this won’t dramatically alter for a long time, leasing could well be the most cost effective way forward.
When leasing a photocopier you can generally add maintenance packages to your lease agreement meaning repairs, servicing and general upkeep is taken care of too. You could even opt for a fully managed service which covers everything but paper. The main downside of a leasing agreement in place over a longer term, say over 5 years, is the long commitment. But how much will your business requirements change over the next 5 years.
If you are a well-established company or know your print volumes won’t change then it could be the way to go for you.
On the face of it, leasing seems infinitely more cost effective than renting. For example, when leasing, the outlay is spread over a longer period of time. It’s also fully tax deductible and so can be paid for out of your business’s taxable profits. There can be significant tax benefits when leasing.
That said, renting has its plus points when it comes to cost effectiveness too. If you only need a copier sporadically, renting is more cost effective. Also, if you have any concerns about the financial burden of a long-term contract, renting is a much safer option, allowing you to terminate quickly without big penalties.
There are pros and cons to both, however if you’re happy with the long-term commitment and don’t require much flexibility, leasing is your cheaper option. If you rent over a long and sustained period, you’ll often end up paying more than you would if you’d have just bought the copier outright. Renting comes into its own though if you need a copier for short projects, here and there, or if you have a business need to stay up-to-date with the very latest in copying tech.
Things to consider when deciding which is best for your company.
There are plenty of things to consider when deciding whether to lease or rent your photocopying equipment. We think these are the top 3 questions you should ask yourself before making a decision:
- How consistent are your copying requirements and do you think this consistency will change?
- Is it important to your business to constantly have the latest photocopying technology at your disposal?
- Do you envisage any changes to your business that could affect any long-term agreements you have in place?
So, in summary, if your copying requirements are consistent and you don’t see any changes that could impact you in the long-term, leasing will likely be your best option.
If, on the other hand, you carry out project work, need the latest photocopying technology to complete the work, you have concerns about entering into to lengthy financial agreement or you are a new start business without accounts then renting could well be a better bet.
Our team are here to help with your decision. If you are currently looking for a new Photocopier and not sure which is the best route for financing the machine, then get in touch by clicking the button.