The cost of a copier lease varies per leasing company and location but it usually starts as low as $100 up to $600 or more. If you need a Xerox copier for your business, these are some of the factors you need to consider in order to get the best deals:
- Type of lease. There are two types of leases: capital leases and operating leases. A capital lease is more like a loan because you get to own the equipment at the end of the lease. An operating lease, on the other hand, is treated like renting because you’ll have to return the equipment once the lease expires.
- The number of years on the lease. Leases usually last for 24, 36, and 48 months. Generally, the longer the term, the lower the monthly payments will be.
- Early termination. Before signing an agreement, make sure to ask if you’re allowed to terminate the lease or if you can pay it off early. It’s also important to check if there’s a penalty for prepayment.
Pros and Cons of Leasing a Copier
Many business owners who want to conserve their budget and minimize purchase risks consider leasing a better option than purchasing a Xerox copier outright. Most leasing companies do not require a significant down payment and they even offer flexible payment options to suit the needs of the businesses they work with.
If you’re thinking of getting a Xerox copier for your company, below are some of the advantages and disadvantages to leasing.
Pros of leasing a copier:
- Leasing keeps your Xerox copier up to date. One of the greatest benefits of leasing is that you get to use the latest equipments without hurting your cash flow. It also reduces the risk of investing in a copier that may end up being obsolete in a few years.
- Easy payments. With a lease, you’ll have fixed monthly payments which can help you budget more effectively. Also, the monthly payments are usually low, so this gives you the advantage of having more cash to spend on other areas of the business.
- Tax deduction. The amount you spend on leasing a Xerox copier can actually be deducted from your taxes as pretax expense.
- Maintenance and repair services. When you lease a Xerox copier, you will never have to worry about its maintenance because your leasing company will take care of that. A technician will initiate routine visits to fine tune your copier and fix any malfunctions. You may even request for your equipment to be replaced when it’s not working properly to avoid downtime and unnecessary stress.
Cons of leasing a copier:
- Added interest. Your lease payment includes interest charges that you wouldn’t be paying if you had purchased the equipment instead. Because of the accrued interest, you may end up paying more when you lease a copier instead of buying it outright.
- Lease term might be longer than you need. Before signing an agreement, make sure that the length of your copier lease matches your business needs. Otherwise, you’ll be obligated to continue making payments even if you’re no longer using the equipment.