Initial Investment Vs. Monthly Expenses
The biggest reason that many small businesses lease copiers is that they don't have the cash to make an upfront copier purchase. Leasing allows you to access equipment while keeping credit lines open for more important business ventures. With a lease, you're guaranteed to have predictable monthly expenses, which may or may not be worth the tradeoff of paying more in the long run. While there are exceptions, leasing a copier is almost always more expensive than purchasing a copier.
Up To Date Technology
Once you've bought a copier, you're stuck with that equipment until you buy a new machine. Copier technology changes quickly, which means that your brand new machine will most likely be obsolete within five years. Most copier leases include regular technology updates so you never have to wait more than a year or two for your next machine. Depending on the needs of your organization, it may be beneficial to have a leasing contract that allows you to keep your technology current.
When you buy a copy machine, you have full control over the maintenance, which includes the repair work that you do in-house and the technician that you use for repairs that are beyond your expertise. In comparison, many copier leases dictate that you adhere to the maintenance requirements that are laid out in the contract. While it may be convenient to follow these guidelines, you can end up spending more money.
You can deduct the depreciation of the copier if you purchase it. The depreciation amounts to approximately 40 percent of the purchase price for the first year and then drops to 25 percent for the following years that you own the machine. For a leased copier, the lease payment is considered a pre-tax business expense, which means that you can deduct all of the payments.
UCI offers comprehensive copier, document and managed services for businesses of all sizes. Whether you're looking at your first lease for a new start up company or you're buying a set of copiers for a large established corporation, we are here to help you. To learn more about buying and leasing copiers in Amarillo and Lubbock, Texas, contact us today.