Should I Buy, Rent or Lease my Office Printer?
Most customers are unsure what the best financial option is for their business when it comes to a new office printer agreement.
The following points highlight some of the advantages and disadvantages of these standard printer agreement options.
Should I BUY an office printer?
- You don’t pay interest fees associated with typical lease and rental agreements
- You can depreciate the capital costs off your books over a 5-year period
- You own the asset outright rather than needing to return the goods with a rental agreement
- The money used to buy the printer could have been invested elsewhere making you a profitable return
- You are stuck with the machine for 5 years until the asset is depreciated off your books
- Given how quickly technology changes, there would be no real asset value down the track
Should I RENT an office printer?
- Monthly payments are 100% tax deductable
- Some vendors offer the flexibility to upgrade the equipment during the agreed term
- Some vendors offer the flexibility to add additional equipment to the agreement during the term
- You don’t own anything when you rent
- If you want to upgrade the machine before the agreed term has expired, most vendors will add the balance of remaining payments (payout) onto the new equipment rental agreement charges
- If you want to add equipment to the agreement during the term, most vendors will restart the rental term, leaving you stuck with old equipment on a new contract
Should I LEASE an office printer?
- The interest charged on the lease payments are 100% tax deductable
- The lease value is depreciated off your books over a 5-year period
- You own the asset once the original residual or balloon amount is paid
- The equipment is deemed an asset & the book value needs to be written down over a 5-year period
- If you need to replace the machine within the lease term, all outstanding repayments (payout) would need to be paid in full or added to the new equipment lease agreement
- By the time you own the equipment, the real asset value is minimal as technology has changed, plus more than likely the machine’s reliability has waned & the print vendor has annually increased your metered service agreement costs
Is there another option for our new office printer agreement?
YES…B2B Digital Solutions offer clients a “Fixed Cost Per Seat” printing agreement.
This is a unique in-house agreement that covers all printer hardware, print usage, software and data reporting, with all consumables and ongoing support included at a fixed monthly cost per seat.
Our agreement is an all-inclusive printing agreement without variable monthly print charges!
If you would like to discuss any printer agreement options or see how Fixed Cost Per Seat Printing would benefit your business please call 1300 43 22 22.