Purchase vs. Lease
Most businesses lease their copiers and MFP equipment instead of buying them outright. There are a number of good reasons for leasing.
1. Obsolescence. First, like other high technology, the capabilities of copiers and MFPs are changing so quickly that a new copier MFP can become obsolete in a relatively short time. A device bought five years ago is nearly a dinosaur by today’s standards, and copiers don’t hold their value at all over time, depreciating very rapidly. With all the recent pressure on manufacturers to lower their per-page costs, an older machine probably has much higher costs per page.
2. Lower day-to-day costs. Second, similar to car leases, copier and MFP leases also offer lower day-to-day costs that can provide tax advantages (more on that below). Add to that the ability to trade in an old model for the newest model on the block when the lease is up, and leasing is the most attractive alternative for most businesses.
That said, from a purely numbers standpoint, over time it would be less expensive to purchase (especially if you buy your copiers and MFPs outright and therefore don’t pay interest on them) but copiers depreciate even faster than cars, and unlike cars they don’t ever get old enough to attain “classic” status.
Many dealers prefer to fold service and supply costs into the equipment lease itself, and it can be tempting to agree to a single contract for simplicity’s sake. This can be a relatively expensive way to handle service and supplies, though, since all-in-one contracts specify a monthly volume, which costs you more (in higher average per copy cost) if you don’t produce that volume in one month, as well as more (in penalty charges) if you produce a higher volume in another.