Leasing vs Buying: 5 Reasons to Lease Office Equipment
Hey there, fellow Business Champions! Do you hear the rhythmic clatter of a new office copy machine? The very heart and soul of a bustling workplace, a copier is a crucial tool for productivity. But wait, a brand-new copier will cost you somewhere between $200 to $500. Hold on! That’s just the tip of the iceberg. Operation, maintenance, and repair costs are other burdens waiting to ambush your budget. Is there a way out of this seeming conundrum?
Yes, my friends, indeed there is! Instead of buying, let’s pivot towards leasing a printer and copy machine. Sounds intriguing, right? Hold on to your office chairs because I’m about to list six convincing reasons why leasing is the genius move you’ve been looking for.
1. Evading the Depreciation Landmine
Just like that shiny new car you bought which lost value the minute you drove it off the lot, copier machines are not immune to depreciation. So, if you cash out on a new machine, it’s already chalking up a loss in value. This loss is a menacing phantom that will forever haunt your business, given that you can never regain your full investment.
Leasing, on the other hand, is the silver bullet you need. It’s like driving a lease car—you enjoy the ride, and once the lease contract ends, you return the equipment to its rightful owner, leaving them to grapple with the depreciated value. Genius, isn’t it?
2. Maintenance? What Maintenance?
One of the most appealing perks of leasing is that these agreements typically bundle in a maintenance agreement. Why, you ask? Well, it’s in the leasing company’s best interest to keep their devices humming smoothly.
From the business standpoint, the inclusive cost for repair and maintenance in your lease is a far cry from what you’d shell out for these services separately. Cost-effective and hassle-free!
3. Cash Flow and Credit—Keep it Steady
Acquiring a copier for your business can sting your cash flow with a sizable upfront cost. That’s where leasing plays the knight in shining armor. With leasing, you can keep your purse strings relatively tight with smaller monthly or quarterly payments.
Not only can this help fledgling businesses build credit, but it also allows you to tie up fewer financial resources. Bonus point—you may even get your hands on a higher-grade copier than what your budget could afford upfront.
4. Upgrades—Ready and Waiting
One of the shining jewels in the leasing crown is the potential for built-in upgrades. This ensures your business stays ahead of the game with the best tech on the market.
Some leases might ask you to wait till the end of the term for an upgrade, while others might let you smoothly transition your current lease into a new one for an equipment boost.
5. Tax Benefits—Maximize Your Deductions
Leasing a copy machine can also have your back when it comes to tax benefits. If you purchase a copier outright, you can only deduct 40% of the price for the purchase year and 25% in the following years.
With a lease, your payments transform into a pre-tax business expense. Voila! Each payment can be fully deducted. So, while the purchase deduction may give you a boost in the first year, in the long run, leasing has the upper hand.
Lease a Printer and Copy Machine—The Smart Move
Finding the cost of printer and copy machines a bit too steep? Time to consider the savvy route of leasing. Your business stands to reap these five marvelous benefits.
To sum it up, a lease helps you dodge depreciation, shrug off maintenance costs, and avoid a substantial upfront outlay. Simultaneously, it opens the door to better tax benefits, built-in tech upgrades, and access to top-of-the-line equipment.
Curious to know more about smart business and tech decisions? Do take a spin around our blog. We have a treasure trove of advice waiting to help you make the most of your business budgets. After all, smart decisions are the building blocks of business success!
