Should you buy, lease, rent or hire a printer or photocopier? Well that is the big question for businesses these days?
This is a complex question and does require some thought and does require to know where your business is at the moment and where your business will be in the next 5 years. So that is something to think about before entering into any agreement over a long term especially if you are an office manager, IT Manager, a Director or a small business owner who has to decide this huge question and make the right decision based on the future direction of the company.
How much do they cost per month? If you just want a cost figure per month, you can use this printer and photocopier leasing pricing tool to get a printer and photocopier copier cost.
Leasing a photocopier or printer (known as a MFP, for Multi-Function Printer in the industry) is a basically monthly payment programme for businesses or small business owners who need to a commercial printer or photocopier with flexible payment options that may include maintenance and toners depending on what supplier and what you negotiate.
Remember even thou we are in Australia everything is negotiable, even thou we don’t practice this a lot. Leasing, Renting or Hiring allows you to pick a payment term from anywhere from 36,48 or 60 month terms with $1 buyout options or clauses to upgrade to new equipment every couple of years, depending on your businesses needs.
The difference is, fair market value leases are simple and are the most common leases executed within the printer and photocopier industries.
Fair Market Value, means at the end of lease term, your business has the option to purchase the machine for sole ownership at that time for its Fair Market Value.
A bit more on fair market value:
(“A Fair Market Value Lease is one of the most common leases that businesses select in part because of its flexibility. Businesses often select a Fair Market Value lease if the equipment they are acquiring, such as technology equipment, rapidly loses its value once it is placed into operation”)
This is the value that is determined by a vendor finance company (the lessor) which usually has arrangements with a supplier or dealer. A $1 buyout is what you should negotiate when you lease any piece of equipment. It is identical to a fair market value lease, but the only difference is what happens at the end of the leasing term. Once your lease comes to comes to the end, instead of the option to buy your machine for the fair market value, the vendor finance company determines the value of the machine at the beginning of your lease term instead of the end, which of course is $1.00 ownership at the end. So, you own your machine for a a nominal value when your lease is over. Of course there is a catch here- your payments are higher than that of an fair market value lease.
- Below are questions to ask about leasing a printer or photocopiers?
- Should I lease, rent or buy a printer, photocopier or copier?
- How much does it cost to lease a printer, photocopier or copier?
- What is the difference between leasing and renting a printer, photocopier or copier?
- What is the average length of a printer, photocopier or copier lease?
- What speed is the printer, photocopier or copier?
- Should I buy or lease an laser printer, photocopier, or digital copier?
- How do I get out of a printer, photocopier or copier lease?
Should I lease, rent, hire or buy a printer, photocopier or copier?
This is often the most difficult question asked when making this decision. Here is some advice.
Typically It makes sense to lease a machine if you are confident that you are capable of paying your monthly payment, each month on time, for the entire duration of that lease term.
It also makes sense to do this if your company is cash rich or leasing is better for tax purposed, you also need to look at the maintenance and toner costs. Leasing, Renting or Hiring also gives different tax breaks; under most standard accounting practices leasing and renting a copier can be written off entirely each month whereas a direct purchase must be depreciated over time.
Renting, Leasing or Hiring a printer or photocopier is not great if you are only need a machine for short duration. If you do need a printer an photocopier for a very short period, then you need to find companies that offer very short term options, like a hire intelligence or equivalent.
Buying a copier is in most cases the most uncommon practice because you immediately own the machine from the minute you pay for it and you have to pay for breakdowns, maintenance and toners.
Service agreements are the largest decision to make when purchasing a printer or photocopier. Service agreement are basically a service contract for the equipment that you pay for on monthly basis, that includes a certain number of printer per month and all toner, parts, labour and consumables. In most cases it includes everything with the exception of paper and staples. Many buyers get easily misled here with service contracts; you do not need to lease a machine just to get a service contract. You can still get a service contract if you purchase a machine as well. Many supplier or dealers will bundle a service contract into the copier lease which may or may not be good for your business, it just depends on what your ultimate outcome is.
Advantages to bundling a service or maintenance agreement into a printer, photocopier or copier lease:
You get 1 invoice every month instead of two.
When does leasing a printer, photocopier or copier not make any sense?
If you are the owner of a business, and are concerned about long term survival it may not make sense, A copier lease is almost always impossible to break, so if long term commitment is not in your future, then leasing is not a good idea.
Also, if your business makes fewer than 1000 prints per month, it may not make sense to enter a leasing contract for a business-level or multifunction copier. You might consider buying an all-in-one printer or photocopier, which is a smaller, but the buying consumables is expensive and if the machine breaks down, cheap printers, copiers or photocopier have a 1 year life span, which the manufacture do this on purpose so you buy another, they do not make any money on a $300 machine, and imagine if that machine lasted 5 years, big manufacture are not that silly, they want you to buy another within 12 months.
How much does it cost to lease a copier?
Most businesses pay anywhere between $50 and $2000 a month to lease a multifunction printer, photocopier or copier.
What is the average length of a copier lease?
Printer and photocopier leases in Australia start from 36, 48 and 60 month terms. The most common lease chosen in the industry is 60 months with a 1 dollar buyout at the end, but what usually happens a business will need something a bit more powerful and renew their lease at the 36 or 48 months.
What speed copier should I buy or lease?
This is where people find themselves in “confusious mode”. What speed,features, paper size, etc. This can be confusing and overwhelming at the same time. Most commercial printers and photocopiers come standard with all the industry standard commercial features (Scan to Email, Networking, Wireless Printing, Duplexing, collating, stapling, scanning, faxing, etc.).
If this will be your office’s commercial printer, photocopier or copier machine and your volume is around 1 – 5k prints per month (for color & b/w) then you should be fine with a machine that prints between 35ppm (pages per minute). Keep in mind that 30 pages per minute means you get 1 page every 1.5 seconds. What you need to do is really ask yourself and your staff what is most important to them when printing or copying, what they do with that job after it is printed or copied and how can this machine make you or your staff more efficient? Most of our machines allows you scan right to email from the machine, scan to a thumb drive, scan to your iPhone, print from your iPhone and more.
Should I lease an inkjet, laser copier, or digital copier? What is the difference?
We just don’t lease small ink jet printers, they are cheap and very expensive and are meant to breakdown in a short term so you buy a another, unfortunately it is just a fact.
Laser copiers: Most commercial machine are laser printers expect for HP wide print inkjet technology which is commercial quality, but has speed in mind!
Digital copiers are just another word for a commercial printer, I don’t where that term spawned from, the only thing digital about a commercial printer or photocopier is the screen.
How to get out of a copier lease (or how do I terminate, cancel or end my current copier lease?)
We are in the business of leasing printer and photocopiers, we are the industry experts in this area and know all the tricks of the trade to get you out of a funky lease. So contact us.