Copier Leasing: A Complete Guide

Copier Leasing: A Complete Guide

Leasing copiers for your office instead of buying them can be a smart financial decision. Leasing provides flexibility, predictable costs, and access to the latest technology. In this complete guide from the U.S. Small Business Administration, we’ll cover everything you need to know about copier leasing to decide if it’s the right choice for your business.

The Benefits of Copier Leasing

Here are some of the major benefits of leasing rather than purchasing copiers according to the U.S. Government Accountability Office:

• Lower upfront costs – Leasing requires little or no down payment, whereas purchasing copiers requires paying the full price upfront.
• Flexible terms – Lease terms are usually 3-5 years. Shorter leases allow upgrading equipment more frequently.
• Predictable expenses – Monthly leasing fees are fixed, making expenses predictable.
• Access to new technology – Upgrading leased copiers is easy, so you can have the latest features.
• Include service/repairs – Most leases bundle maintenance and repair costs.
• Scalability – It’s easy to add or reduce the number of leased copiers as needs change.
• Tax benefits – Lease payments may qualify as tax-deductible operating expenses according to the IRS.

Key Factors to Consider in Copier Leases

There are several key factors you’ll want to evaluate when considering a copier lease according to the SBA:

• Lease term length – Typical terms are 24, 36, 48, or 60 months. Shorter terms allow upgrades sooner.
• Page volume allowance – Leases include a maximum monthly page volume. Overage fees apply if you exceed the allowance.
• Lease buyout terms – Some leases let you purchase the copier at lease end. Check for this option and pricing.
• Maintenance and supplies – Find out what is covered under maintenance and what supplies/parts you’ll pay for.
• Termination clauses – Check ability to end lease early and any fees that apply.
• Copier return condition – Understand requirements for the copier’s condition when returned.

Steps for Choosing a Copier Leasing Company

Follow these steps from the Federal Trade Commission when selecting a copier lease provider:

1. Research potential vendors and get price quotes.
2. Compare lease terms, monthly fees, and included services.
3. Check reviews and testimonials from the vendor’s current clients.
4. Ask about their copier fleet – newer models signal better tech.
5. Inquire about warranties, maintenance response times, and parts availability.
6. Tour their facilities if possible to view operations first-hand.
7. Calculate total cost comparisons of buying vs leasing.
8. Negotiate any unclear or unsatisfactory lease terms.
9. Carefully review the final lease agreement before signing.

Questions to Ask Potential Copier Leasing Companies

Here are some important questions to ask when evaluating copier leasing vendors according to the SBA:

• What is included in routine maintenance and what is not?
• What copier models do you recommend for our volume and needs?
• What lease terms and options do you offer?
• What happens if our copy volume exceeds the lease allowance?
• Can you provide references from current customers?
• Who handles copier repairs and maintenance?
• How quickly can you provide service when there is a problem?
• How will you address equipment downtime if copiers need repairs?
• What are your data security protocols for stored data?
• What are my end-of-lease options?

Making a Final Copier Leasing Decision

When deciding on a copier lease, weigh the pros and cons. Leasing usually makes sense if you:

• Want to conserve capital and limit equipment risk
• Require the latest technology and regular equipment upgrades
• Have fluctuating office needs with uncertain copy volumes
• Prefer predictable operating expenses for office equipment
• Do not want to manage copier maintenance and repairs

Buying may be better if you:

• Use equipment for 5+ years without needing upgrades
• Have very high and steady copy volumes
• Prefer to own equipment for tax depreciation purposes
• Have in-house expertise to handle copier maintenance and service

Carefully estimate your current and future usage patterns, required features, and internal capabilities to determine if leasing or buying copiers is more beneficial for your organization.

Key Takeaways on Copier Leasing

• Leasing often costs less upfront than purchasing and provides predictable expenses.
• Look for leases that bundle maintenance services to minimize operational costs.
• Shorter lease terms allow upgrading to new equipment more frequently.
• Thoroughly evaluate and compare lease providers to get the best service and terms.
• Ask detailed questions and review lease terms closely before signing any agreement.
• Weigh leasing pros and cons versus buying to choose the best option for your needs.

Copier leasing can be an excellent choice for many organizations. Following this guide from the SBA will help you leverage the benefits of leasing while avoiding potential pitfalls. Carefully considering your office’s needs, provider options, and lease terms will ensure you choose the right copier leasing arrangement.