Everyone has an opinion when it comes to what the best way is to get equipment for your office. While there’s no perfect solution, there are pros and cons to both leasing and buying. We want to give you a quick, honest look at those to help you decide on the best direction when the time comes to acquire or replace your law office’s copier.
Copier Leasing Basics for Legal Offices
From financials to features, here’s what you need to know about leasing your next copier.
Top Copier Leasing Benefits
- Predictable budget. You know exactly how much you’re going to spend monthly
- Comfort. With leasing, there are no surprises. If your copier stops working or needs service, you don’t have to worry about footing the bill or finding the right copier technician.
- Tax benefits. Copier lease payments are pre-tax business expenses, allowing to deduct your monthly payment from your yearly taxes.
- Level-up easily. Upgrade to the newest technology every 2-3 years to take advantage of the best time and cost-saving features.
Top Copier Leasing Drawbacks
- No ownership. Your copier is not an asset to your company.
- Commitment. You’re locked into a set monthly payment for a set amount of time.
- Longterm costs. Like most rental agreements, your law office copier lease may include interest and fees, which means that you end up paying more for the equipment by the end of your lease term than if you would have purchased the equipment upfront.
Types of Copier Leases
Fair Market Value Lease (FMV)
This is the most popular form of acquiring a copier. A Fair Market Value Lease (FMV) is the best way to get a high-efficient copier with the newest technology and at the cheapest monthly price. If you are considering buying the copier at the end of the lease, this would be your best option because you will not have to pay for the full price of the copier when the lease ends. Instead, you can purchase the equipment for a price that the vendor deems a “fair market value”.
If you aren’t interested in buying the machine, you can return the device to the copier vendor and upgrade to a newer, more high-tech copier, often at a similar monthly cost. This is great for companies that have evolving needs and want to be able to capitalize on new features and available integrations or software.
- This is the most popular and affordable option for most legal offices.
- You can return and upgrade your equipment at the end of your lease agreement.
- The copier is not an asset to your company, just an expense.
This type of lease is exactly what you might think it is; you get to buy the copier for $1 at the end of your lease term. The trade-off? Your monthly lease payments will be higher than they would on the Fair Market Value Lease agreement.
The biggest advantage of this type of copier lease is that you get the benefit of ultimately owning the copier without having to have upfront capital to outright purchase the equipment.
- You own the device at the end of your lease agreement.
- Monthly payments are typically high in exchange for a cheap purchase price.
- Get benefits of ownership without the upfront cost.
Copier Buying Basics for Legal Offices
While leasing a copier has it’s clear advantages and disadvantages, buying might be more of what you’re interested in. If that’s the case, here’s what you should know before you sign the check.
Top Copier Buying Benefits
- Pay once and for all. You don’t have to worry about budgeting monthly spend to reimburse a copier vendor.
- Flexibility. You’re not locked into a lease for a specific amount of time.
- Possibly more cost-effective. In some instances, buying saves you money in the long run because you end up paying more for the device through a lease when all is said and done.
Top Copier Buying Drawbacks
- Cashflow. You have to purchase the copier outright, typically costing several thousands of dollars.
- Costly ownership. You are financially responsible for all maintenance, service and equipment, which can add hundreds, if not thousands to your yearly budget.
- Missing out on new technology. You cannot upgrade your equipment periodically, as if you were leasing your copier on a multi-year term.