Buying vs leasing office equipment is a question that often comes to the mind of many business owners – no matter how big or small the company is – when thinking about upgrading or installing new technology in their offices.
Every business owner budgets and balances their books each month, weighing expenses for the benefit of their employees and their business.
Printers can be expensive and with additional, new technology options, they can cost tens of thousands depending on your needs and industry – the more features, the more expensive.
This is not an easy decision. That’s why weighing your options can help in the long run. Buying office equipment can save you in the long run, but what are the benefits of leasing? In this article, we explore the advantages and disadvantages of both.
Advantages of buying a printer
Cheaper in the Long Run: In the long run, you won’t be paying interest on the item being rented, so it ends up being cheaper.
Maintenance is yours: Depending on your contract, this can be filed under the PRO list. You will want to weigh the maintenance costs on top of the purchase costs because leasing contracts usually cover maintenance costs.
Tax Incentives: As a business owner, you have the right to deduct the cost of purchased assets.
Disadvantages of buying a printer
High Upfront Costs: Direct purchase costs can seem expensive. This may tie up money that can be reinvested into your business – expenses such as marketing, product development, business expansion, and more.
Unexpected Maintenance Costs: The care and maintenance of the printer is yours once you own it. This is part of the freedom of ownership, however, it can come with unexpected maintenance costs that were not included in the initial start.
Outdated Equipment: Technology becomes obsolete quickly. Depending on the industry you’re in, a growing small business may need to update its technology every year or two. Buying office equipment in advance often forces you to get stuck with non-standard equipment or have to sell equipment for a much lower cost than what you purchased.
Advantages of renting a printer
Smaller Upfront Costs and Manageable Monthly Expenditures: When renting a printer, you often don’t have to pay anything up front and your monthly fees are set so that you can budget according to your company’s capabilities. This will allow you to invest money in places that will help you grow your business.
Maintenance Coverage: most leases cover maintenance and repairs. This takes the stress out of having to worry about sourcing printing repairs and allows you to rely on a third party, provided by your leasing company, to look after your maintenance.
Latest Equipment: Technology is constantly changing. The shelf life of technology is like the neighbor grass analogy – something greener is always in sight. Leasing allows you to hand over outdated technology equipment to the company that leases you equipment and refresh your equipment every few years.
Trial and Error: To get the best equipment for your business, leasing allows you to try a product on a short-term basis and decide if it is right for your business. There’s nothing worse than buying new equipment and realizing that no one in the office is using it and you need something different.
Compete with the Competition: Leasing allows you to acquire expensive equipment that your business may not be able to afford. This allows you to compete with your bigger competitors without draining your bank account.
Disadvantages of renting a printer
You’re Bound by Rent: If you buy office equipment and then realize you’re not using it, you always have the option of selling it and losing some money. If you sign a two-year contract for a printer, you are required to pay a monthly fee for two years regardless of whether you use the equipment or not.
Credit and Document Checks: Taking a lease involves paperwork and often credit checks. While this is usually not a problem, it does involve time.
So whether to rent or buy because both have advantages and disadvantages. If your equipment needs are small and you have the capital, then a purchase might be an option for you. It’s easier and you’ll save money in the long run. However, if you are a beginner and are unsure of the suitable equipment, rental is the solution.