Purchasing and maintaining a copier is expensive. Almost every few years a new model comes out, making your machine inferior or obsolete. Because of the high costs that are involved in operating and owning a piece of equipment, a lot of businesses are leasing rather than buying.
Leasing has advantages that buying does not, and it includes lower monthly installments, which are usually spread over years or months rather than charging you the whole cost. A lot of copier leases also include service add-ons or service agreements, which offer peace of mind for users and removes the need for in-house technicians.
If you need a new copier but can’t afford it, you can lease it. Here are four guidelines that you can go through before making the big decision.
Benefits of leasing
There are a lot of benefits in leasing a piece of equipment that you should be aware of. A lot of lessors do not require a huge amount for the down payment; you do not need to update the equipment frequently because leasing a piece of equipment means you are not stuck with the equipment for long. You can also upgrade the equipment if you want to without selling anything and they are eligible for tax credits depending on your lease
Of course, not all leases are the same and there are numerous ways to finance your lease. If you want to lease a piece of equipment for your business, you can apply for a loan. The lenders sometimes offer leasing options so that you can look into those as well.
Ask the important questions.
Before you lease equipment, you need to answer some questions like what is your monthly budget? How long will you need the equipment? How quickly will the equipment be inferior or obsolete? And can you get a lease for your equipment?
Leasing offers lower monthly installments than buying a new one, but you still need to consider the cost into your cash flow. You can start with the copier that you can afford and slowly work from there. You also need to consider the length of time that you will be using the copier. For short-term use, leasing is the most cost-effective way.
If you are using a copier for three years or more, you can apply for a loan or use a standard line of credit as it is more beneficial than leasing the equipment.
You also need to keep in mind that technology becomes outdated fast, consider the copier before deciding whether buying or leasing works more for you. The range of copiers that qualifies for a lease is limitless, but there are still conditions. Leases let those who can get a higher dollar value get the best and newest copier, so if you want to get the best of the best you need to work on your credit.
Pros and cons of leasing
A lease is ideal for a piece of equipment that needs constant upgrading like copiers and computers. Leasing gives you the freedom to get the latest model with a low down payment and monthly cost. Also, leasing provides a wider range of options for you; it makes it possible to afford a copier that would otherwise be too expensive to purchase.
On the downside, leasing requires you to pay an interest, which adds to the overall cost of the copier over time. There are times where leasing can be more expensive than if you were to buy the copier outright, especially if you buy a copier when the lease term has expired.
Some lenders enforce a term length and a mandatory service package which can add to the overall cost of the lease term and it can extend beyond how long you need the copier. You can get stuck with paying for something that you no longer need.
Leasing vs. other options
Buying a piece of equipment is not the only alternative to leasing; it is also not the most common. You can apply for loans, credits, and other factoring services as they are other means of financing a piece of equipment as well.
Loans give more ownership of the copier. With a lease, the lessor holds the title of the equipment and offers you options on how to buy it once the lease ends. Loans enable you to retain the title to the copier, securing the machine’s purchase against assets.
The major drawback of a loan is the terms. A line of credit or a loan has interest rates that fluctuate throughout the term, unlike a lease which gives fixed-rate financing. Budgeting can be problematic for loans because of the constant changes. Banks and other lenders require larger down payment than leases.
Whatever your decision may be, you should go through all the options that you have before leasing a copier to make sure that you won’t encounter any issues along the way.
If you are in Los Angeles and you are looking for a Copier in Los Angeles for your business, you may contact Clear Choice Technical Services in Los Angeles. You can ask about Copier Leasing Services in Los Angeles, Copier rental services in Los Angeles, and Copier Repair in Los Angeles.