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Here are some reasons to rent rather than buy a copier!

1. Obsolescence: First, like other high technology, the capabilities of copiers and MFPs are changing so quickly that a new copier MFP can become obsolete in a relatively short time. A device bought five years ago is nearly a dinosaur by today's standards, and copiers don't hold their value at all over time, depreciating very rapidly. With all the recent pressure on manufacturers to lower their per-page costs, an older machine probably has much higher costs per page.

2. Lower day-to-day costs: Second, similar to car leases, copier and MFP leases also offer lower day-to-day costs that can provide tax advantages (more on that below). Add to that the ability to trade in an old model for the newest model on the block when the lease is up, and leasing is the most attractive alternative for most businesses.

Reasons to Rent:

  • Lease a copy machine if your business is short on cash or you want to conserve your cash.
  • Sometimes the interest rate used to calculate the copier's lease payment is lower than you would pay for a loan, because the copy machine company is trying to encourage copy machine leasing.
  • Lease copy machines to get "more copier" than you could afford to buy.
  • On a copier machine lease, you don't have to be bothered with selling the copier when the copy machine lease expires. The photo copier lessor takes it back after the copy machines lease expires.
  • When you lease a copier, you pay only for the time you use it. Photocopier leasing payments may be lower than they would be for a copy machine loan, because you're only paying for a part of the life of the copy machine asset.
  • Most copy machine leases are structured so the entire lease copier payment is an immediately deductible expense. If you buy a photocopier, you have to capitalize and depreciate the copier asset, which may mean a slower recovery of your photocopier costs.
  • If a photocopier lease is operating, no liability normally needs to be recorded for future copier lease payments, improving your company assets to liabilities ratios.
  • Most copier leases include copier maintenance and other services in a single price.

Reasons to Buy:

  • You may be able to use the copier considerably longer if you buy a photocopier. You could save considerable money over the entire life cycle of the copier.
  • When buying a copier, you can expense the entire cost of the copier buy in one year.
  • You have the cash to buy a copy machine, and the short term leasing tax advantage may not be important to you.
  • When buying a photocopier, the interest rate used for the photocopier buy is much lower than under the photocopiers lease.
  • When leasing copy machines, getting a "lemon" replaced (repeated breakdown or frequent downtime) may quickly get complicated. It may mean having to break your copier lease agreement.

Call for more details: Trico Copier 309-686-0200, or click here to email us.

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