TL;DR: The Bottom Line
Leasing a copier is the best choice for most businesses as it preserves cash flow, eliminates maintenance worries, and ensures you always have up-to-date technology. Buying a copier makes sense only for businesses with available capital who have very predictable, stable printing needs and prefer to own their assets for long-term depreciation benefits.
Leasing vs. Buying: Making the Smart Choice for Your Office
Choosing a new multifunction copier for your business is a significant decision. But just as important as *what* machine you get is *how* you pay for it. The debate between leasing and buying office equipment can be confusing, but the right answer depends entirely on your company's financial situation, technology needs, and long-term goals.
For over 70 years, we've helped thousands of businesses in Nebraska and Kansas navigate this exact question. In this guide, we'll break down the pros and cons of each option. First, use our interactive calculator below to see a personalized cost estimate.
Lease vs. Buy: Total Cost of Ownership Calculator
Adjust the sliders to see a personalized estimate for your business.
Your Estimated Results
Leasing
Upfront Cost
$233
Est. Monthly Payment
$233
Total Cost Over Term
$13,980
Buying
Upfront Cost
$8,000
Est. Monthly Costs
$65
Total Cost Over Term
$11,900
Bishop's Recommendation
For businesses prioritizing cash flow and modern technology, leasing is often the recommended path.
Estimates are for illustrative purposes. Actual costs may vary.
The Case for Leasing: Flexibility and Peace of Mind
Leasing is the most popular option for a reason. It's an operational expense (like your rent or utilities) that provides access to the best technology without a large upfront cost.
Top 4 Benefits of Leasing:
- Preserves Capital: There's no large cash outlay. Instead of tying up thousands of dollars in a depreciating asset, you can invest that capital back into growing your business.
- All-Inclusive Maintenance: Most lease agreements are bundled with a Managed Print Services contract. This means all service, parts, labor, and toner are covered under one predictable monthly payment. No surprise repair bills.
- Technology Stays Current: A typical 36 or 60-month lease allows you to upgrade to a newer, more efficient model at the end of your term. This is crucial for accessing the latest security features and productivity tools.
- Tax Advantages: Lease payments are typically 100% tax-deductible as a business expense. (Always consult your accountant for specifics).
The Hidden Financial Benefit: Opportunity Cost
Beyond the direct benefits, leasing offers a powerful strategic advantage. When you lease, you avoid spending a large sum of cash upfront. Smart businesses can then reinvest that preserved capital back into profit-generating activities.
For example, instead of spending $8,000 on a copier, you could invest that money into a new marketing campaign, purchase more inventory, or hire a key employee. The return you generate from that investment is the "opportunity cost" you would have missed by buying the equipment. For most companies, the return on investing in their own growth far outweighs the benefits of owning a depreciating asset like a copier.
When to Lease: You should lease if you want predictable monthly costs, don't want to worry about maintenance, and want to refresh your technology every few years.
The Case for Buying: Ownership and Control
Buying a copier means you own it outright. It's a capital expenditure, and once it's paid for, it's yours.
Top 3 Benefits of Buying:
- Lower Total Cost of Ownership (TCO): Over the full lifespan of the machine (7+ years), buying will almost always be cheaper than leasing. You have no monthly payments after the initial purchase.
- Complete Control: You can do whatever you want with the equipment since you own it. There are no page volume limits or end-of-lease terms to worry about.
- Depreciation Benefits: As a capital asset, you can depreciate the cost of the copier over time, which can provide tax benefits.
When to Buy: You should buy if you have the available cash, your print needs are very stable and unlikely to change, and you plan to use the machine for its entire lifespan. However, remember you will still need a separate budget for supplies and service calls.
Frequently Asked Questions (FAQ)
Q: Can I buy my copier at the end of the lease? A: Yes, most lease agreements offer a buyout option, typically for Fair Market Value (FMV) or a pre-determined price like $1.
Q: What happens if my business grows and I need a bigger copier during my lease? A: At Bishop Business, we offer flexible lease upgrades. We can often roll your existing agreement into a new one for a machine that better fits your growing needs.
Q: Is toner included when I buy a copier? A: No. When you purchase a machine, toner and supplies are bought separately as needed. With a lease and service agreement, toner is typically included and often shipped automatically before you run out.
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