When it comes time for a new wide format printer, will your company lease or buy one? Although there are many factors to consider when acquiring new office equipment, purchase and lease options are often an afterthought. Don’t get too caught up in all the bells and whistles of your new printers and forget to examine how you are going to afford it.
Wide format printers are a necessity for many businesses, particularly those in marketing or advertising. Before you buy your new printer, remember why you are getting one—probably to save money from outsourced print jobs and retain greater control over your projects. Don’t squander that money and oversight with an unfair lease or overpriced machine. First, understand the different options.
When it comes to leases, there are two common types: fair market value or dollar buyout. Fair market value, sometimes referred to as an operating lease, offers low money payments. At the end of the fixed-rate period, you have the option to purchase the WFP for “fair market value” as determined by the leasing company. If you do not want to buy it out, you can continue to pay based on the lease terms or return the printer. This is a desirable option for businesses who need a low monthly fee and don’t need to own a machine outright.
Dollar buyout or capital lease is a good option for those who can afford a higher monthly rate than FMV. With dollar-out leases, you pay $1 at the end of the lease to satisfy the terms and own the Canon or Ricoh wide format printer. In this scenario, the primary difference is that you (the lessee) own the printer, whereas, with fair market value, the leasing company owns the printer. If you want to own your printer, but can’t afford the upfront cost of a traditional sale, this is a good way to buy one. Also, due to the tax benefits, dollar buyout leases are a good option for non-profit organizations.
If your business can afford it, and you do not want any monthly fees, purchasing a wide format printer is a great option. Due to interest rates, when you lease a printer, you actually end up paying 1-2 times more than the actual cost of the equipment. Depending on the particular printer, that can add up to a significant amount of money. When you buy a printer, you own it outright, so you can keep it as long as you like without worry. However, one downside is that as technology advances, you cannot trade it for a newer model like with a lease agreement.
If you have any questions about leasing or buying office equipment, including wide format printers, contact us today for more information.