When it comes to buying vs leasing office equipment, it can be hard to make a decision. Each option comes with its own benefits and advantages, so how do you know which one works for you?
If you are making an upgrade, begin by considering the pros and cons of buying and leasing. It may be that one option is better suited for your needs, and this could save you a lot of money in the long run.
Leasing Office Equipment: The Pros
Some supply stores offer leasing solutions that provide you with options that suit your needs at an affordable financing rate.
This option also allows you to choose from a variety of leasing solutions that fit within your budget, and you always know what the cost will be before you have to pay it. As a result, you can effectively include it in your monthly budget and account for it.
The Benefits of Buying New Office Equipment
Buying is an easier option because you don’t need to sign a contract or negotiate terms. You can just choose your machine, pay, and bring it home.
There are also other buying options that can help reduce costs if need be. For example, you don’t need to buy a new copier. You could opt to look at refurbished copy machines or used photocopiers in order to save money.
As a business owner, another benefit of buying new office equipment is that it qualifies as a business expense so you will be able to deduct it after a certain period of time.
One of the most important factors in leasing office equipment is that the equipment is not yours. Therefore, you are unable to expense it and it could get tricky if it breaks.
Sometimes leasing also comes with fine print that you will need to read because it could impact your usage of the machine. For example, you may need a specific type of insurance or have to pay a deposit. This could also mean you may get stuck in a long-term contract that you can’t get out of if you no longer need the equipment.
Lastly, sometimes there are high-interest costs associated with leasing office machines that could impact your budget, so make sure you read the fine print carefully.
The Downside of Buying
Buying new office equipment can lead to larger up-front costs that can have a big effect on smaller businesses with tighter budgets. If you don’t need the equipment for a long time, you probably don’t need to purchase it.
Another downside of buying is that your machine will depreciate in value as soon as you purchase it and bring it home, just like a car. Therefore, if you wanted to re-sell it you wouldn’t get the full cost back.
Buying vs leasing Office Equipment: The Final Verdict
The reality is that it all depends on your business and your needs.
Leasing would be better for you if:
- You are a small or startup business with a limited up-front budget.
- Your business requires specific, expensive office machines you can’t pay full price for.
- The machine is only needed for a short-term or one-off project.
Buying would suit your needs if:
- You’re a larger business with a higher budget.
- The machine is going to be used permanently for the long-term future.
- Your business has a high volume of printing needs or relies on printed paper materials frequently.
If you still need some help making a decision, talk to one of our experts. We provide both buying and leasing solutions and have trained team members on hand to ensure someone is always there to help you.