Lease vs. Buy: Weighing the Pros and Cons of Copier Leasing in Kansas City
If your business needs a modern, high-speed Multifunction Printer (MFP) but lacks the capital for a large upfront purchase, copier leasing is an excellent financial strategy. Leasing allows you to use essential, expensive office equipment by dividing the cost over a multi-year contract.
However, leasing is a long-term commitment. Before signing an agreement, business owners in Kansas City must weigh the benefits against the potential pitfalls.
Copier Leasing vs. Buying: A Quick Comparison
| Feature | Leasing (Operating Lease) | Buying (Purchase) |
| Upfront Cost | Low or none; conserves working capital. | High; large capital expenditure required. |
| Technology | Easy to upgrade to the newest model every 3–5 years. | Equipment may become outdated before it is fully depreciated. |
| Maintenance & Supplies | Included in a single monthly Managed Print Service (MPS) fee. | Your responsibility; unpredictable repair costs and supply purchasing. |
| Total Long-Term Cost | Often higher over the entire lease term. | Lower total cost, but requires management of depreciation/resale. |
| Tax Treatment | Payments may be deductible as an operational expense.* | Deduction via depreciation schedule.* |
*Consult your CPA for specific tax advice.
The Upsides: Why Businesses Choose to Lease
Leasing is often the most strategic choice for companies prioritizing cash flow and reliable technology:
- Preserves Capital: The biggest advantage is saving your working capital. Instead of spending tens of thousands of dollars upfront, you manage predictable monthly payments, freeing up cash for revenue-generating activities.
- Includes Service and Support: Leasing provides peace of mind. Your agreement should bundle all essential maintenance, parts, and toner supplies into a single monthly fee. You never worry about unexpected repair costs or running out of toner.
- Future-Proof Technology: Leasing contracts are typically 36 to 60 months. At the end of the term, you can easily upgrade to the latest technology, ensuring your office never operates with outdated or slow equipment.
The Downsides: Potential Pitfalls of Leasing
While leasing is flexible, it has real disadvantages that must be addressed:
- Higher Total Cost: Over the full term of the contract, the total amount paid (including interest and fees) is almost always higher than the initial purchase price.
- Inflexibility of Term: Once the lease is signed, the contract is locked. If your business shrinks or you need to exit the agreement early, cancellation often involves significant penalties and fees.
- The End-of-Lease Hassle: Returning the equipment can sometimes involve additional fees (e.g., de-installation or refurbishment costs) that were not transparently explained upfront.
The Most Important Choice: Lease Type
The biggest challenge—and the key to choosing the right agreement—is understanding the two main lease structures:
| Lease Type | What It Is | Tax Implications | End-of-Term Option |
| FMV (Fair Market Value) | A true rental agreement. | Payments may be 100% deductible as an operating expense. | Return the machine, renew the lease, or buy the equipment at its Fair Market Value. |
| $1 Buyout (Capital Lease) | Functions like a loan. | The equipment is treated as an asset and depreciated over time. | Buy the machine at the end of the term for a nominal fee (usually $1). |
Choosing the wrong type can severely impact your tax liability and your options when the contract expires.
Need Help Choosing the Right Path in Kansas City?
Leasing is an excellent solution for small to medium-sized businesses who need to boost productivity without spending a lot of upfront capital.
General Service and Quote Requests
If you plan to get copiers for your office, you can buy copiers or lease copiers. We can give you options for getting the copy machine that you want. You can contact our local copier leasing services department in your location.
For all services, call Clear Choice Technical Services:
- Phone: (913) 203-1300
- For copier leasing, request a quote today.
- For short-term rental inquiries, request a rental quote.
For dedicated Copier Repair Services in Kansas, please visit our Repair Services Website for immediate assistance. Our network is powered by Clear Choice Technical Services.
