Copier Leasing Companies

Photocopier Leasing May Be a Good Option, but Always Read the Fine Print

Written by Steven Bryan

In some business situations, copier leasing makes a lot more economic sense than buying the equipment outright. As demonstrated by the experience of one New York City public school, though, it always pays to do plenty of research and read the fine print before signing any lease agreement.

Copier Leasing Versus Buying

High-end, multifunction copiers can cost thousands of dollars, which puts quite a strain on the office equipment budget. By entering into a 24-, 36- or 48-month lease agreement, you can spread the cost of the equipment over time. Lease agreements typically cover maintenance and the repair of critical parts, but paper, toner, ink and staples come out of your office budget.

As with most leases, you will pay a premium for leasing the copier instead of buying, but you can customize your agreement with options such as the "$1 buyout" clause. At the end of your lease agreement, you have the option to purchase the photocopier for just $1; in other cases, you only have to pay a "fair market price" to keep the copier. This is a good option if you like the equipment and want to keep it. At tax time, you also can deduct the monthly lease payments as business expenses.

Don't Lease More than You Really Need

Michael Winerip of The New York Times wrote a cautionary tale about photocopier leasing, focusing on the problems of one Manhattan school administrator. Filling in for her boss, who was on academic leave, the administrator was pressured by one copier salesman into signing expensive copier leases that the school didn't need. When all was said and done, the school district paid a hefty price for equipment, some of which was not even plugged in for several months.

Winerip's account brings to mind some questions that you should ask when looking at lease agreements:

• How many copies do you make a month? The New York City school in the article estimated that it made 40,000 copies a month for its 550 students, but ended up with two machines that could produce 65,000 and 200,000 copies a month, respectively. Don't be bullied by high-pressure sales tactics.
• Do you have the room for a large commercial copier? Winerip wrote that one copier filled an entire room at the school, which did not even have the proper electrical outlet for the machine.
• Does the agreement force you to use the leasing company's repair staff and buy paper and toner only from them? You should always have the right to buy your own paper and contract with outside technicians for repairs not covered under the lease agreement.

Are you ready to lease a copier? Submit a free request for price quotes and get matched to multiple dealers who will try to get you the best deal for your business.

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