If you’re a print-heavy organisation, there’s a strong argument for leasing a printer rather than buying one outright. But, if you use a printer a lot, why would you not just own it?
The answer’s simple: when you buy a printer or copier, you’re tying up a large sum of money in an asset – an asset that’s only going to lose value. With leasing, you don’t need to worry about depreciation, and it means you can keep up-to-date with the latest models.
Our blog explores the theory behind leasing an office printer or photocopier in more detail…
Leasing an office printer is similar to leasing a car
The trend of people leasing – rather than buying – their personal cars is increasing. According to the latest data available from the Finance and Leasing Association (FLA), just under 960,000 private new car buyers took out some form of car finance in 2018, with a record total of almost £19.4 billion borrowed.
What’s this got to do with printers?
The reasons that people are choosing to lease their cars are similar to why you might want to hire a printer. Let’s look at a few of them:
1. Don’t use up money in the bank
Both a car and a printer can prove to be costly purchases. While your average printer is not as much as your average new car (£18,900, as per the FLA), you can still find yourself forking out a few thousand pounds for a quality business class printer.
As a small business, you often have to make limited capital go a long way. Buying or leasing a printer can be the difference between going into an overdraft/taking out other lines of credit and keeping your business bank balance looking healthy.
2. Flexible end of term options
When taking out some form of finance on a car, there’s usually an element of flexibility at the end of the agreement. You can either hand the car back and pay no more for it, return it in exchange for a newer model or buy it for its depreciated value and keep hold of it.
The option you choose will depend on your circumstances and it’s similar when leasing a printer and other office equipment for your business. If the printer has been reliable and well used, you might decide you want to keep it and continue your rentals. However, if there’s a newer model available, you might be better off upgrading and starting a new agreement.
This element of flexibility is essential for any business where demand can fluctuate.
Is leasing right for your business?
Unless you know that your business has enough cash reserves and it can absorb the costs around asset depreciation, then you might be better off leasing your printers. In a competitive market, leasing new and upgraded equipment can help you stand out from your competitors.
If you’d like more information on how leasing could benefit your company, get in touch with Shire Leasing’s finance experts who can help find the right solution for your business goals.