Office Photocopiers: Lease, Rent or Purchase?
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An office photocopier is an expensive piece of kit, and companies looking to procure one may be reluctant to shell out thousands of pounds in one go. There a several different payment options with their positives, negatives and occasional pitfalls.
Leasing
Broadly speaking there are two main types of lease. But within these categories, every lease contract is different. When you’re leasing a photocopier it’s absolutely crucial that you check the terms and conditions of the contract, because while the right lease can be a useful option, leasing companies are notorious for stinging customers with conditions in the small print.
Lease Rental
This involves paying for your photocopier over a period of time specified in the contract (usually a year or more). Almost all of these stipulate a minimum term for the lease, so if you want to back out early and get rid of the photocopier you will have to pay the remaining instalments up front.
The important thing about this type of payment is that the leasing company retains ownership of the photocopier even after the lease expires. Be aware of this when you’re signing the contract – some people end up paying thousands of pounds over a period of years under the misapprehension that they will own the photocopier at the end. This is not always the case.
The positive aspects of this sort of agreement are you don’t have to pay any large one-off payment, and that it usually entails a maintenance service and the option of upgrading to a newer model free of charge.
Lease Purchase
A lease purchase agreement follows the same idea as lease rental – lower monthly or quarterly payments over a fixed period of time – but when the lease comes to an end you are given ownership of the photocopier. As with lease rental, you must pay a settlement figure up front if you wish to end the lease and get ownership before the minimum term is up.
With all leases you should thoroughly check the terms of the contract, including the interest rates on the total amount payable. Also be careful regarding what happens at the end of the agreement – sometimes your lease will run on beyond the minimum term unless you expressly say you wish the contract to end.
Maintenance agreements and consumables (paper and toner) are sometimes, but not always, included in the terms of the lease.
Rental
Renting an office photocopier is the best option for those who know that they only need the equipment temporarily. Obviously you will not get ownership of the machine, but unlike lease rental there are no minimum terms involved so there is much greater flexibility in length of use.
Purchase
Buying your photocopier outright requires you to pay a lump sum up front, which in turn may mean you have to take out a bank loan. This is why leasing is often a more preferable method for financing the deal, because the schedule of payments is more reliable and transparent than the repayments of a standard loan.
If you can muster the cash though, you won’t be tied down to any contract and you can do whatever you please with your photocopier. The downside is you’ll need to provide all the extra paraphernalia such as paper and toner, and you won’t get free upgrades when your photocopier becomes out of date.
