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You’ve whittled down your options for a cutting-edge copier for your office and are prepared to invest. You still need to choose: Should it be bought or leased a printer for a small business?
If you’re unsure of the correct response, continue reading to discover the advantages and disadvantages of purchasing versus leasing copiers. But first, you should be well equipped with a basic understanding of buying or leasing.
Let’s figure it out!
Fundamental Difference Between Leasing And Buying
| Basis | BUYING | LEASING |
| MEANING | Buying means paying the asset’s price to acquire it. | When someone leases an investment, the owner agrees to let them use it in exchange for regular payments. |
| STAKES INVOLVED | Buyer and Seller | Lessor and Lessee |
| COST | Ownership costs for the asset. | Usage cost for the purchase. |
| TRANSFER | The investment may be transferred or sold by the buyer. | The investment may not be sold or otherwise transferred by the lessee to another party. |
| CONSIDERATION | It can be paid in one single sum or a certain number of equal monthly installments. | It is repayable with leasing rentals. |
| TERM | The asset’s economic life. | Predefined period |
| OWNERSHIP OPTION | The investment is solely the buyer’s once all outstanding debts have been paid. | The lessee has two options after the term: either buy the asset outright or give it back. Don’t like ads? Become a supporter and enjoy The Good Men Project ad free
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| REPAIRS AND MAINTENANCE | Buyer’s responsibility | Depending on the type of lease |
| RESIDUAL VALUE | Allows the buyer to benefit from the asset’s residual value.
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Lessee forfeits the asset’s remaining value. |
We think you got an overview of what leasing and buying an asset fundamentally refers to.
Now, Let’s Talk About the Pros And Cons For The Same
Pros Of Office Printer Leasing
- Low Initial Cost
Leasing equipment has the main benefit of enabling you to purchase printers with modest initial outlays, and you can acquire the printer you need without substantially impacting your cash flow.
- Deduction for Taxes
The net cost of your lease printer for small business is frequently decreased by the ability to deduct lease payments as business expenses on your tax return.
- Flexible Conditions
When purchasing printers, leased printer for small businesses are typically more flexible and easier to get than loans. This can be a viable option if you have weak credit or need to negotiate a more extended payment plan to reduce your printer lease cost in Canada.
- You Can Upgrade Printers Easily
Businesses can deal with the issue of obsolescence via leasing. A lease shifts the risk of obsolescence to the lessor if you use it to buy products like printers or other high-tech equipment that might become obsolete quickly. After your lease expires, you are free to charge printer lease cost in Canada.
Pros Of Buying Printer Online
Ownership
The fact that you own the equipment when you purchase it is undoubtedly the most significant benefit. This is particularly true for items like office equipment or farm machinery that have a long functional life and are unlikely to become out-of-date technologically very soon.
Tax Benefits
You become eligible for tax benefits when buying an office printer or machinery. You only have to pay a specific amount of tax at the time of purchase, not anytime again.
Possibility Of The Depreciation Deduction
Although not all equipment is eligible for such depreciation deduction, you can still enjoy tax savings for almost any business equipment.
Note – Real estate, commodities purchased for sale, and property acquired from a close friend are examples of assets that are not eligible for the depreciation deduction.
Let’s See Some Negative Aspects Too.
Cons of Office Printer Leasing
High Printer Lease Cost In Canada
Renting an item is often more expensive than buying a printer online.
You Do Not Possess It
You don’t accumulate equity in the machinery. This lack of ownership, unless the equipment is obsolete by the conclusion of the lease printer for small business, is a severe drawback.
Obligation To Pay For The Whole Length Of The Lease
You are responsible for making payments for the whole lease time even if you stop using the equipment. Some printer lease costs in Canada allow you to break the lease if your company changes course and the leased equipment is no longer required, but there are almost always significant early termination fees.
Cons Of Buying Printer Online
Unexpected Expenses
Your initial investment in your printer does not cover recurring expenses for toner replacements, paper, or repairs. If unanticipated expenses arise, this can affect your monthly budget.
Retail Value Of The Purchase,
The initial cost of purchasing printing equipment may be prohibitive for your business if your workflow needs the newest printing technologies or if you have high printing requirements. The budget allocated for other corporate growth areas will be deleted.
Then What’s Better, Office Printer Leasing Or Buying?
- The cost and flexibility are the key distinctions between office printer leasing and buying an office copier.
- If you know you’ll need a copier for a long time but don’t want to pay the upfront cost of buying printer online outright, leasing is a better option because lease agreements are typically lengthy and less flexible than renting.
- Office printer leasing is ideal if you have a well-established firm and know you’ll continuously use a copier for a considerable time.
- Renting a copier is preferable if you don’t want to be constrained by lengthy contracts.
- You’ll get shorter-term contracts and more freedom to update or downgrade your equipment if you rent.
- Renting may also be an option for you if your projects vary in duration and scope.
Time To Conclude!
When deciding whether to buy or lease printers for small businesses, there is no right or incorrect response, and it entirely depends on your organization’s needs and resources.
Buying printer online outright and setting aside money for recurring maintenance fees is undoubtedly the best option for you if your budget allows it. If not, leasing is something that your business should intensely explore. Fortunately, you can get both options, purchasing or leasing, at Absolute Toner.
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