When it comes to your business, making smart decisions is crucial to its success. One decision many organizations struggle with is whether to buy or lease their office equipment. Does it make more sense for you to purchase your devices outright, or lease them for defined periods? There’s no right or wrong answer to this question, as there are pros and cons to each option. Which option better suits you depends on your unique situation. So, before you make a commitment, be sure to consider each of these options from all angles.
Pros of Buying Office Equipment:
- Cheaper over time - When you purchase equipment, you make a one-time payment. On the other hand, if you were to lease a device, you would be paying for it every month. There will come a point where the amount you have spent on leasing the equipment will surpass the initial up-front cost. In this way, you would have saved money if you had just purchased the device in the first place.
- Ease of purchase - The buying process is fairly simple and straightforward. You choose which device you want, make payment arrangements, and await delivery. If you were to lease equipment, it would take a little longer. There is usually an application process, including credit checks and financial record reviews.
- Tax deductible - You will be able to write the entire cost of the equipment off come tax season. If you choose to lease, you can only deduct the monthly payments you have made that year.
Cons of Buying Office Equipment:
- Loss of value - Just as with the purchase of a car, you will have to worry about depreciation.This means they lose value the longer you own them. If you decide to sell off the equipment down the road when you are ready to upgrade, you will be hard pressed to get much value for it.
- Obsolescence - The biggest issue with committing to a purchase is that technology is constantly changing. With each technological advancement, a device will grow closer to becoming obsolete. If you spent a lot of money on a piece of equipment that becomes out of date quickly, you may not be financially prepared to purchase a new machine to replace it.
Pros of Leasing Office Equipment:
- Predictable monthly budget - When leasing devices you know exactly how much you will need to spend on equipment each month. This way, you are able to easily plan future financials.
- Lower initial cost - As opposed to buying the machinery outright, which requires you to pay the entire cost of the equipment up front, you will be able to spread payments out over time. In this case, you will not have to worry about spending so much capital in one fell swoop.
- Upgrade potential - This is particularly important, as technology is continuously evolving. When leasing equipment, you don’t have to worry about being stuck with a device that no longer meets your needs or doesn’t have the latest technology. Your office technology provider can upgrade you to another device when necessary without a huge financial burden.
Cons of Leasing Office Equipment:
- Higher long-term costs - As you continue to pay a monthly fee for leasing equipment, you will eventually end up paying more money than the initial value of the item. This may not be an ideal situation financially.
- Strict terms - Hardware leases usually have very strict terms and if you violate any of them, you may face large penalties. When you do not own the items outright, you are subject to the rules put forth by the company that actually owns them.
If you are in the market for new office equipment, contact All Copy Products today! Our trained professionals will be able to answer any questions you may have and give you the necessary guidance to make the right decision of whether to buy or lease hardware for your business.