Advantages of Leasing an Office Copier

1. Lower Initial Costs

Leasing: When you lease a copier, you typically pay lower upfront costs compared to purchasing outright. This is especially beneficial for businesses with budget constraints.
Purchasing: Buying a copier requires a substantial initial investment, which might strain your cash flow.

2. Flexible Commitment

Leasing: Leases offer flexibility. You can choose lease terms that align with your business needs (e.g., 36, 48, or 60 months). At the end of the lease, you can upgrade to a newer model.
Purchasing: Owning a copier means committing to it for the long term. Upgrades may be costlier and less frequent. As the equipment ages the cost-per-print for service raises and parts will eventually become difficult to source.

3. Tax Benefits

Leasing: Lease payments are often tax-deductible as operating expenses. Bonus depreciation under the Tax Cuts and Jobs Act allows you to write off the entire cost of qualified assets in the first year.
Purchasing: Depreciation benefits are spread over several years, and outright purchases may not offer the same tax advantages.

Fair Market Value (FMV) Lease vs. $1 Buyout Lease

1. Fair Market Value (FMV) Lease

Type: Operating lease (more like a rental agreement).
Ownership: You don’t own the equipment; it remains with the lessor.
End of Lease: At the lease end, you have the option to purchase the equipment at its fair market value (FMV).
Ideal For: Businesses that want flexibility and plan to upgrade equipment regularly.

2. $1 Buyout Lease (Capital Lease)

Type: Capital lease
Ownership: You make the payments and own it at the end of the term.
End of Lease: You pay a nominal amount (often $1) to buy out the equipment.
Ideal For: Businesses seeking long-term ownership and equipment that retains value.

Examples of Suitability for Each Lease Type

FMV Lease:

Flexibility to swap out at the end of the term for new equipment, or purchase it for the FMV
Recommended for businesses with high volume that don’t want to end up with an overworked copier
Always have current technology, making obsolescence obsolete.
Equipment will always be within the service window with available parts and supplies.

$1 Buyout Lease:

Recommended for businesses who typically keep their office equipment for 5+ years
Not recommended for high volume environments, as the equipment will become overworked. Low volume environments are recommended.
Eventually the equipment will age out of the service window and parts and supplies will be difficult to source

In summary, leasing provides flexibility, lower upfront costs, and tax benefits, while purchasing offers long-term ownership. Choose wisely based on your business requirements and financial considerations.

Remember, whether you lease or buy, a well-functioning copier keeps your office humming efficiently! 📊📄

Nationwide Sales and Service

Platinum Copier Solutions is the premier Sharp copier dealer in Texas, but we can cover your office equipment needs nationwide! We work with a network of certified Sharp providers around the country to provide coverage to all 50 states. Your business has one company to contact for all sales, service and supply requests.

Perks of using one vendor company-wide:

Consolidated billing
Live voice answering for service dispatch and supply orders nationwide
Uniform fleet with matching interfaces and supplies
Standardized “clone” file so all of your equipment has identical settings (security, network settings, interface customization)
Support tools for IT staff to manage entire fleet
Automated meter reading collection
Proactive toner shipment (*opt-in)