What Kind of Copier Lease Is Best for Your Company?
FMV Copier Lease
An FMV Lease means you pay the “Fair Market Value” at the end of the lease if you want to keep the copier machine.
The copier is leased to you for the term you sign up for and at the end of the lease, you are required to return it. This includes the fact you are responsible for the packaging and the freight costs for the copier. Your monthly payment will be lower because the bank gets the copier and can sell it in the open market.
- Lower monthly payment
- Ensures you will get a new copier at a specified time frame
- You do not own the copier after the lease is over
$1 Out Lease
A $1 Out Lease means if you pay $1 at the end of the lease, the copier is yours. This is a lease that is essentially like getting a capital equipment loan. After paying all your payments on the hardware, you are able to pay $1 and the copier is yours. You can sell or continue using it as you see fit.
- You keep the copier even after the lease is over
- You don’t have to pay to send then copier back
Should You Lease a Copier or Buy One?
It depends on your business. For most small businesses, we recommend leasing a copier or multifunction printer over purchasing.
Leasing a Copier
- Fewer costs upfront preserve operating capital.
- Less hassle, more “managed services,” including toner, paper, maintenance and repairs included.
- Avoid obsolescence — you can swap your lease for the newest printer once the term is up.
- Maintain standards across branches by leasing the same models. All units can be upgraded at the same time.
- Locked into a contract.
- More expensive over time.
Buying a Copier
- Lower overall cost — no interest or rental fees.
- Not locked into lease terms.
- Recoup the expense by selling the asset for fair market value when upgrading.
- Flexible maintenance and repair options — not stuck with the lessor’s maintenance plan and provider.
- Expensive to replace.
- Hard to maintain consistent standards if copiers are not simultaneously upgraded across branches.
Be Wary of Lease Upgrades from Other Companies
You will generally be offered to upgrade your multi function copier when there are approximately 6 months remaining on the contract. Here is why this is offered and why you should avoid these.
Say you have a Konica Minolta copier lease that costs $300 per month and a maintenance plan that is another $300 per month. If you get out of the lease with 6 months left and roll into a new lease, that is $3,600 of contract liability left ($600/month X 6 = $3,600 for both the copier and maintenance).
For the company getting the new copier, it would actually be better not to take the offer as they are paying $1,800+ more in interest for the new copier than if they had just waited the 6 months.
It is nicer to get the sale than it is to protect a customer’s interest for many companies.
We at Copier Depot are as transparent as possible. There are many ways companies can hide money in a lease. Leases are a great way for companies to get into high-quality equipment but there is no reason you should get locked behind the fine print!
Contact Copier Depot today to discuss what terms might be best for your business on copiers for lease. When it comes to copier services and copier sales in Austin, Texas, the Copier Depot delivers!