Sometimes this can be a daunting task, especially if you are an office manager or executive assistant who has been assigned to this decision. Typically, it makes sense to lease a machine if you are confident that you are capable of paying your monthly payment, each month on time, for the entire duration of that lease term. It also makes sense to do this if you are trying to conserve capital for other expenditures. Leasing (and renting) also qualify differently for deductions; under most standard accounting practices leasing and renting a copier can be written off entirely each month whereas a direct purchase must be depreciated over time.
Even complex print jobs, the MX-2615N/MX-3115N produces HIGH-QUALITY, vibrant color documents in-house, helping you save time and money. Sharp’s advanced device management tools make it simple for businesses to control system access, color usage and costs. To make integration with network applications easier than ever. In addition to its advanced productivity features, the Sharp MX-B402 Multi-function Copier also boasts toner cartridges that offer double the toner capacity and lifespan compared to the previous model. As a result, this benefits the customer by helping to reduce potential downtime and maintenance intervals.
Leasing
Leasing a copier (also called an MFP, Multi-function Peripheral) is an extended payment option for businesses or private parties who need to upgrade or replace their current equipment with flexible payment terms. Leasing allows you to pick a payment term (anywhere from 12-64 months in most cases) and lease type ( FMV or $1 buyout). The difference is, FMV leases are simple and are the most common leases executed within the copying and printing industry. FMV stands for Fair Market Value, which means at the end of the lease term, the customer or buyer (the Lessee) has the option to purchase the machine for sole ownership at that time for its Fair Market Value. This is an appraised value that is determined by the bank issuing the lease (the Lessor). A $1.00 out lease, or “dollar buy-out” is even easier. It is identical to a FMV lease, but the only difference is what happens at the end of the leasing term. Once your lease comes to an end, instead of the option to buy your machine for the fair market value, the bank states the value of the machine at the beginning of your lease term (instead of the end), which of course id $1.00. So, you own the machine for a dollar when your lease is over!
Leasing is a form of financing the capital component of a copier that relies on spreading the cost across a number of payments over a fixed lease term. Similar, but different to rental plans. A finance lease is what is normally offered by vendors and relies on a set “residual” to determine the rates (i.e. monthly lease charge). At the end of term, payment of the residual amount (usually expressed as a percentage of the purchase price) will transfer ownership of the unit from the finance company to you.
An operating lease is different from a finance lease in that there is no obligation for you to payout the residual and assumes ownership of the goods at the end of lease term. You may, however, be able to purchase the goods at fair market value, 10% and dollar buyout. In simple terms, an operating lease is like a rental scheme but with more flexible end-of-lease options.
When does leasing a copier not make any sense?
If you are the owner of a new business and are concerned about long term survival it may not make sense. A copier lease is almost always impossible to break, so if long term commitment is not in your future, then leasing is not a good idea. Additionally, most new businesses can have difficulty getting approval from a bank for a lease; expect to sign a personal guarantee if you have been in business under 2 years and are trying to get approval for a lease, just like any other leasing contract. Also, if your business makes fewer than 700 copies a month, it may not make sense to enter a leasing contract for a business-level or multi-function copier. You might consider buying an all-in-one copier, which is smaller, usually desktop copy machine that can print, copy, scan, and fax just like a multi-function copier but at a slower speed. Make sure to look for a laser all-in-one copier rather than an inkjet copier, because inkjet ink is more expensive than laser toner. Inkjet printers have a price per page of around 20 cents, compared to laser printer pages which costs about 6 cents a page.
How much is the average length of a copier lease?
Most leases conform to 12,24,36,39,48,60 and 63 month terms. The most common lease chosen in the industry is 36 months FMV.
Should I lease an inkjet, laser copier, or digital copier? What is the difference??
Inkjet copiers or printers are never a good idea for any size of business because they are the most expensive and have the worst visual output. Inkjet devices have a cost per page of about 20-32 cents, per color page, while printers from a laser device costs about 6-9 cents per color page (b/w is approx. 9 cents on an inkjet and 1 cent or less on laser). Inkjet devices are also a lower capacity output, meaning that you’ll have to replace paper and ink two to three times more than a laser.Inkjet cartridges can also dry up if not used, which can lead to a repair of the ink head and a replacement of the costly cartridge. Last but not lease, inkjets are SLOW! They only real use inkjet devices have are for home or consumer use that is very infrequent. To sum it up, they don’t make any sense for a business whatsoever.
Laser copiers:
A laser copier or printer is the most popular choice among businesses because they print / copy at a faster speed and require toner (which costs less per page than inkjet devices). Not to mention, laser printer copiers produce much higher-quality documents (which should be important to you if you’re often printing presentations or contracts). Also, toner is dry- so unlink inkjets, it will never dry up!
Digital Copiers:
Most of today’s business or laser copiers are also called digital copiers. By “digital,” this means the device includes an internal scanner or fax, meaning the machine can scan and store documents. Scanning is very common these days as faxing is almost obsolete. This is very useful for most offices because devices can scan a document and then either store it immediately, fax it immediately or email it right from the copier. Once a document has been converted to digital, it can then be archived on your computer or server instead of a paper filing cabinet. What is even more important about this element is the retrieval process of that document when it is needed. It can be found with a simple keyword within that document instead of digging through paper files. Think about that- what if someone misplaces an important contract in your filing cabinet? It could take you hours or days to find it. Digital never has that problem because a simple word will retrieve the document for you.
Analog Copiers:
At the time of this article being written (March of 2012) I am quite confident that no one is producing analog copiers any longer. The difference between analog copiers and digital copiers is the technology. Analog copiers would have to scan a document ten times, in order to make 10 copies of it. A digital copier can remember the scanned document and make 10 copies of it after scanning it only once. Additionally, analog copiers could not print, scan or store documents.
How to get out of a copier lease (or how do I terminate, cancel or end my current copier lease?)
Since we are in the business of leasing office equipment, we have very detailed knowledge in this area. There are several things you can do, or look for that may allow you to exercise the termination of your lease. We will absolutely need to review your current lease, which you can email to us at [email protected], be sure to include your information so we can respond with our instructions.
If you need to write a termination letter at the end of your lease, we have a lease termination template letter that is already written and covers everything you need to state to legally end your lease.