Copiers and printers are must-have pieces of equipment in nearly every small business or office.
As a matter of fact, stand-alone copy machines are standard fixtures and some of the frequently used office equipment.
While this is the case, the best copiers are known to be relatively expensive to buy, especially for startups and small businesses.
Rather than buying the cheap, and often poor quality, copiers, you should consider leasing one at an affordable rate.
Based on statistical findings, about eight in every 10 copiers in offices today are likely to be under a financing program, probably a lease contract.
Most lease contracts in the industry often cover maintainable, service and repair costs of the copier.
Some providers do not even require an upfront out-of-pocket payment or any form of down payment.
All you are required to do is commit to a pre-determined payment amount in monthly installments for a certain period.
Well, the affordability if these monthly installments can be enticing, but exactly how much will it cost you to lease a copier?
Cost to Lease a Copier – Average Leasing Rates
On average, a low volume copier, say one with a volume of between 20 and 30ppm, costs about $70 a month to lease.
While most copies are relatively affordable to lease, high-end models can cost as much as $700 a month to lease.
Again, you also need to include the cost of the required supplies into the overall cost. In this regard, you should expect to spend about a penny for every black and white copy you produce.
At the end of the lease period, you will probably be presented with an affordable buyout option.
While some lease contracts will allow you to buy the equipment at a relatively lower price, others only require you to pay $1 and the copier is yours.
Colored copies can cost as high as 6 cents per copy. Although these are the standard rates under the prevailing market conditions, the actual copier lease cost will vary from one model and provider to another.
- A 35ppm Ricoh Aficio3035 copier with a document feeder and fax capabilities will cost you about $224/month to lease.
- A 40GB HD capacity Sharp MX-M450N copier with a volume of 45ppm and a paper capacity of 2,500 will be leased for about $208/month, with a 39-month contract.
- Sharp MX-3501N colored copier will definitely be costlier, with most of them going for about $309/month with a 60-month lease contract.
- The AR-M277 by Sharp is the more affordable option, with most providers leasing it for an average of $177/month. In most cases, lease contracts for this printer are inclusive of the toner, repair and maintainable costs.
How Much Does It Cost to Lease a High-Quality Copier?
Just as is the case with the buying prices, copier lease costs vary considerably from one unit to another. In this case, the cost will be determined by such aspects as the copier make and model, condition, memory size, and production capacity.
If you are wondering the much it will cost you to lease a copier for your business, here are some of the cost factors you should consider:
Type of Lease Contract
Again, the much you will end up spending in a copier lease will also depend on the type of lease agreement you get into. Basically, there are two options available when leasing copiers: A capital lease or an operating lease.
With a capital lease, the transaction will be treated much like a loan, with the leased equipment accounted as an asset on your balance sheet. This means that you benefit from such things as tax depreciation and the like.
The main downside to this type of lease is the time length of the contract, which can extend up to five years. This being the case, you may find yourself still paying for an out-of-date machine long before your contract ends.
This is the preferred lease contract type for most small businesses that have leased copiers in the past two years.
One of the key benefits associated with this lease contract is that it does not tie up your funds as such. Again, such contracts are comparatively shorter-term leases, with a lease period of three years or less.
With this type of arrangement, the company leasing the copier maintains ownership of the machine. For the business leasing the equipment, it is considered a monthly operating expense and not a depreciable asset.
Copier Features and Capabilities
As you may be aware, the features and capabilities, as well as the copier technology used by these machines, vary from one model to another.
Well, this will also determine how much you need for each copier model. For enhanced affordability, you may have to go for a model that offers just the features you need.
However, this will also limit scalability as your business grows. In this regard, the memory capacity, printing speed, and advanced capabilities will determine the overall worth of any particular copier.
For instance, a copier that features color printing and full duplexing capabilities will attract higher monthly installments.
In contrast, you will find the basic black and white copiers cheaper to buy or lease because most of them do not have complex features and technology.
All in all, copiers with duplex printing cost almost twice those with just single-sided printing capabilities.
Insurance on the Equipment
Though not standard, some vendors will require you to ensure the equipment before leading it to you.
In such a case, you will also need to factor in the insurance premium into the copier lease cost. Then there are those vendors that will just charge you additional fees to cater to the insurance.
If you were to pay for equipment insurance separately month after month, you will probably find it expensive to insure the copier throughout the lease period.
This being the case, it is advisable to research the market for the best rates before committing to any vendor.
Whether you buy your own insurance or pay extra on the lease for it, it is advisable to know what the limits are beforehand.
In this case, you need to check whether the vendor will apply any deductibles to your monthly copier installment payments.
With some copier models priced above $1,000, many you do not want to find yourself on the wrong side of the insurance limitations, should something happen to your leased unit.
Are You Leasing A Used or New Copier?
Just as is the case with many other equipment types, the cost of leasing a copier will depend it’s a condition at the time of signing the lease contract. In this case, you will either be getting a new or a pre-owned copier.
Regardless of the make and model, a used copier cannot be priced as a new one, right? Well, the same case applies to copier lease costs.
With a new copier, you will probably be getting the most current technology available. Again, new equipment if often covered by a valuable warranty. As such, these will be costlier to lease or buy.
Pre-owned copiers, on the other hand, are relatively cheaper. However, the unit is more likely to become obsolete sooner than a new copier.
If this is your preferred copier lease equipment option, you should consider getting some form of guarantee or warranty by the vendor.
Lease Buyout Option
Would you just want to lease for the time being and end up buying a copier eventually? If so, you need to choose the right lease to own contract for your preferred copier make ad model.
Basically, copier lease cost is mainly determined by the rate factor and what will happen to the unit after the lease period.
Depending on your future plans, regarding copier ownership, here are the two main lease options you should consider:
Fair Market Value (FMV)
This essentially means that the equipment can be purchased at the end of the lease for fair market value.
The buyout out in this case will depend on the prevailing market conditions as well as what you agreed on with the provider.
The buyout copier cost with the FMV option is often a couple of hundreds. Some providers will offer you the FMV lease type without the option to own the equipment at the end of the lease contract.
In either case, the FMV lease option features the lowest rate factor, hence often attracts affordable monthly payments.
This option is commonly referred to as the $1 Buyout lease. It allows you to purchase the copier for just solar at the end of the lease contract.
While this is the most preferred option for business owners who intend to own the copier, it comes with higher monthly installments.
The downside to this lease option is that you will probably want to upgrade to new technology by the time the lease expires. Therefore, it can make sense to opt for an FMV lease.
If you are after affordable monthly installments, you will have to settle for longer lease periods.
If you would like to clear the payment in a shorter period, the provider may require you to pay higher amounts in monthly installments. The lease period is also determined by the type of lease you will sign up for.
Under normal circumstances, copier lease cost can be cleared in 24, 36 or 48 months. As with most leases, or loans, the longer the term, the lower the monthly payments will be.
And – as with most lease agreements – you will end up paying far more, over time, on a longer lease for a machine you may already want to upgrade.
While deciding on the appropriate lease period, you need to consider your business needs. Currently, you may only need a limited number of features and a machine with lower capacities.
Changing Business Needs
As the business needs change, you will also need to scale your copier capabilities up to accommodate the changing business needs.
When that happens, some vendors will allow you to transfer the existing lease agreement to a different copier.
However, not all vendors will allow you to use the same lease agreement for different copiers overtime.
If your provider dies not to allow for that, you may be forced to get a new lease agreement for another copier, and still, continue paying for the outdated one.
As you can imagine, this can become a burden on your finances as time goes by. Therefore, you need to go through the lease agreement terms and conditions before signing to ensure that you are covered in such an eventuality.
Early Termination Fees
Similar to some creditors and financial institutions, some copier lease agreements may require you to pay a certain amount of money as a penalty, if you terminate the contract prematurely.
It may not be your initial intent, but different factors may force you to terminate your copier lease agreement.
Since not all vendors charge early termination fees, it pays to first ask whether your preferred provider does before committing yourself.
If the providers charge a penalty for early termination, the fees you pay in such an eventuality will drive the overall copier to cost up.
Ready to Lease a Copier?
For smaller businesses, leasing some of the expensive office equipment and appliances, such as copiers, is often the best investment decision.
Since most of the small and medium-sized businesses have limited finances, you need to choose a provider that offers you the best value for money.
In this regard, it pays to know the various copier lease cost factors beforehand.
As you have learned throughout this guide, copier leasing rates are determined by such aspects as lease type and period, buyout option as well as the features and capabilities of the unit.
With this guide, you can avoid unnecessary payments, hence settle for the best copier lease cost in the market.