82%
of businesses lease their copiers
$200-800
typical monthly lease payment
3-5 years
average lease term
25-40%
savings when buying outright
Side-by-Side Comparison
Leasing
✅ Advantages
- Lower upfront costs - typically just first and last month
- Predictable monthly expenses for budgeting
- Easy technology upgrades every 3-5 years
- Preserves capital and credit lines
- 100% tax deductible as operating expense
- Often includes maintenance and support
- No disposal concerns at end of term
❌ Disadvantages
- Higher total cost over time (15-30% more)
- Locked into contracts with penalties
- No ownership or equity building
- Overage charges for excess usage
- Insurance requirements add cost
Best For:
- • Businesses wanting latest technology
- • Companies with limited capital
- • Unpredictable or growing print needs
- • Those wanting predictable expenses
Buying
✅ Advantages
- Lower total cost over 5+ years
- Complete ownership and control
- No monthly payments after purchase
- Freedom to choose service providers
- Asset on balance sheet
- Section 179 tax deduction available
- Can sell or trade when upgrading
❌ Disadvantages
- Large upfront capital requirement
- Risk of obsolescence
- Responsible for maintenance costs
- Must handle disposal/resale
- Depreciating asset value
Best For:
- • Stable businesses with capital
- • Predictable long-term print needs
- • Companies keeping equipment 5+ years
- • Those wanting ownership benefits
Real Cost Comparison
Example: $15,000 Copier Over 5 Years
Leasing Costs
Monthly payment (60 months):$350
Total payments:$21,000
Insurance (required):$1,200
Total Cost:$22,200
Purchase Costs
Purchase price:$15,000
Service contract (5 years):$3,000
Resale value:-$2,000
Total Cost:$16,000
Savings by purchasing: $6,200 (28%) over 5 years
Tax Implications
Leasing Tax Benefits
- •
Operating Expense Deduction
100% of lease payments deductible as business expense
- •
Immediate Deduction
No depreciation schedules to manage
- •
Off-Balance Sheet
Operating leases don't appear as debt
Purchase Tax Benefits
- •
Section 179 Deduction
Deduct full purchase price up to $1,160,000 in 2025
- •
Bonus Depreciation
60% first-year depreciation in 2025
- •
Asset on Books
Improves balance sheet assets
Important: Tax laws change frequently. Always consult with your tax professional for advice specific to your situation and current regulations.
Decision Framework
Choose Leasing If...
You have limited capital or want to preserve credit
Technology updates are important to your business
Your print volume is unpredictable or growing
You prefer predictable monthly expenses
You want maintenance included
You're a startup or new business
You don't want to manage equipment disposal
Cash flow management is a priority
Choose Buying If...
You have available capital to invest
Your print needs are stable and predictable
You plan to keep equipment 5+ years
You want to minimize long-term costs
Ownership and control are important
You have in-house IT/maintenance capabilities
You want to build balance sheet assets
You can utilize tax benefits effectively
Alternative Financing Options
Equipment Financing
Purchase with a loan specifically for equipment. You own the copier but pay over time.
- • Lower rates than leasing (4-8% APR)
- • Build equity immediately
- • Flexible terms (2-7 years)
- • Equipment serves as collateral
Lease-to-Own
Lease with a $1 buyout option at end of term. Combines benefits of both approaches.
- • Higher monthly payments than standard lease
- • Guaranteed ownership at term end
- • May qualify for Section 179
- • Good for stable businesses
Rental Programs
Short-term rentals for temporary needs or trial periods.
- • Month-to-month flexibility
- • Highest monthly cost
- • Good for seasonal businesses
- • Try before committing
Frequently Asked Questions
What are typical copier lease terms?
Most copier leases run 36-60 months (3-5 years), with 48 months being the most common. Shorter terms have higher monthly payments but more flexibility. Longer terms lower monthly costs but may lock you into older technology.
Can I buy my leased copier at the end of the term?
Yes, most leases offer a Fair Market Value (FMV) purchase option at lease end, typically 10-15% of original price. Some leases have a $1 buyout option but have higher monthly payments.
What happens if I exceed my monthly page allowance on a lease?
Excess pages are charged at a per-page rate specified in your contract, typically $0.01-0.03 for B&W and $0.05-0.15 for color. These overage charges can significantly increase your costs.
Are maintenance and supplies included in a lease?
It depends on the lease type. Cost-per-copy agreements include maintenance and supplies. Equipment-only leases require separate service contracts. Always clarify what's included before signing.
Which option provides better tax benefits?
Leasing offers immediate deduction of monthly payments as operating expenses. Purchasing allows depreciation deductions and Section 179 immediate expensing up to $1,160,000 in 2025. Consult your tax advisor for your specific situation.