Leasing vs Buying Office Printers
Choosing whether to lease or buy an office printer is a strategic decision that can impact the operational and financial aspects of your business. Both approaches have unique benefits and the most suitable option often depends on your company’s size, budget and long-term needs. Here, we’ll explore the pros and cons of leasing and purchasing office printers, providing a breakdown of their financial and strategic implications. With a clear understanding of the differences between these options, you can decide what best aligns with your business goals.
Leasing Office Printers
Leasing office printers has long been a strategic choice for businesses, offering flexibility and reducing maintenance burdens. Based on a report1 , the printer leasing market is experiencing steady growth, with the computer and printer leasing industry in the United States valued at approximately SGD 6 billion in 2024, growing at a compound annual growth rate (CAGR) of 0.3% over the past five years This trend reflects a sustained preference for cost-effective printing solutions. It's also important to distinguish between rental and leasing—rental involves short-term printer use from a vendor, while leasing allows businesses to pay over an extended period (e.g., 3 or 5 years), often with the option to purchase at the end of the term. Capital leasing can resemble renting but includes a buyout option. Understanding these differences helps businesses make informed decisions that align with their financial strategies.
Pros of Leasing Office Printers
Lower Upfront Costs
One of the major benefits of leasing is the lower initial expense due to it being manageable monthly payments instead of one large payment.
Flexibility to Upgrade
Leasing arrangements often allow businesses to upgrade their printers as technology progresses or as their printing needs evolve.
Reduced Maintenance Responsibility
In many leasing contracts, maintenance and support are included.
Cons of Leasing Office Printers
Commitment to Long-Term Contracts
Leasing often involves multi-year agreements, which could mean committing to a specific provider or model of printer for several years
Additional Costs
Monthly lease payments may include added fees, such as usage limits or extra charges for exceeding print volume quotas. There may be a fee for early cancellation of lease. To avoid these costs, consider a leasing solution that includes usage tracking, such as ApeosWare Management Suite, it is a software that can manage printers and their usages and provides integrated authentication, print output, log accounting and document distribution.
Lack of Ownership
Unlike purchasing, leasing doesn’t allow your business to build any equity in the equipment. The lack of ownership can be troublesome when you've customised features such as the user interface, address book or scan-to-cloud folders, as all these settings will need to be reinstalled once the lease ends.
Purchasing Office Printers
Buying office printers outright is often the preferred route for businesses that rely heavily on printing and want full control over their equipment. Ownership can offer financial and operational benefits, though it does come with its own set of considerations.
Pros of Purchasing Office Printers
Full Ownership
When you buy a printer, it’s yours. This gives you the freedom to manage it as needed, with no restrictions or terms imposed by a leasing company.
No Ongoing Payments
Purchasing eliminates the need for ongoing lease payments. However, certain optional features like software and plans may require additional monthly or annual costs, which may include services and other consumables.
Potential Resale Value
An owned printer can retain some resale value, especially if it’s well-maintained. Businesses upgrading to newer equipment can often recoup part of their initial investment by selling the printer, or trading in for a newer model which isn’t an option for leased equipment.
Cons of Purchasing Office Printers
Higher Initial Investment
Buying a printer requires a significant upfront cost, which may not be feasible for smaller businesses or those with other financial priorities.
Maintenance and Repair Costs
Owning a printer means handling all maintenance, repairs and upgrades, which can incur additional costs and downtime. Alternatively, businesses can purchase a maintenance contract, but this adds to expenses. For those without IT support, it may also lead to operational delays.
Risk of Obsolescence When you purchase a printer, newer models may reduce your investment's value over time. Additionally, managing firmware and technology upgrades is your responsibility and some machines may not support the latest updates, requiring purchasing a new printer entirely.
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Financial Analysis: Comparing Leasing vs. Purchasing
When choosing between leasing and buying, it’s helpful to evaluate each option from a financial perspective. Here are a few methods to analyse the costs associated with each choice:
Total Cost of Ownership (TCO)
Total Cost of Ownership (TCO) is a critical factor in evaluating both options. It considers all costs over the life of the printer, including upfront expenses, lease payments or purchase costs, maintenance, supplies and resale value. Calculating TCO can provide a clearer picture of the long-term costs associated with each approach, helping you make a well-informed decision.Break-even Analysis
A break-even analysis helps businesses determine whether leasing or purchasing a printer is more cost-effective over time. It calculates the point at which the cumulative cost of leasing equals the total investment required for purchasing. To find the break-even point, divide the total cost of buying by the monthly lease payment to determine the number of months it takes for leasing costs to match purchasing costs. For businesses expecting long-term printer usage, purchasing may offer greater cost savings, while leasing is often a better option for flexibility or limited budgets.Cash Flow Impact
Leasing can be appealing for businesses prioritising cash flow, as it spreads costs over multiple payments rather than requiring a large upfront sum. For companies needing flexibility or focusing on growth, leasing allows them to allocate capital to other critical areas such as expansion, hiring or innovation. Instead of tying up funds in equipment purchases, businesses can maintain liquidity and respond more effectively to market opportunities.
Additionally, leasing may include maintenance and upgrades, reducing unexpected costs and ensuring access to the latest technology without significant financial strain. This predictable expense structure helps businesses manage budgets more efficiently, making leasing an attractive option for those aiming to optimise cash flow while staying competitive.
Factors to Consider Beyond Financials
While finances play a major role, there are other factors to weigh when choosing whether to lease or buy an office printer.
Business Needs
Choosing between leasing and buying a printer goes beyond just print volume. Start by assessing your specific requirements:Single vs. Multifunction Printer
Do you need just printing, or do you frequently scan, copy and fax? A multifunction printer can streamline workflows.Features & Workflow Optimisation
Consider which features you use often, such as duplex printing, colour or black & white, mobile printing or advanced scanning for digital document management.Confidential Information Handling
If you deal with sensitive data, security features like user authentication and encrypted printing may be crucial.Printing Volume & Frequency
Do you print large batches regularly, or is your usage sporadic? High-volume needs may require a more robust printer.Ease of Use & Maintenance
User-friendly interfaces, automated toner replenishment and maintenance support can enhance efficiency.Beyond budget, consider technology trends when deciding between leasing or purchasing. Laser printer advancements are often incremental, but sustainability innovations like FUJIFILM Business Innovation’s Super EcoToner can help reduce your environmental impact. Leasing also offers the flexibility to upgrade periodically, ensuring compatibility with emerging technologies.
- Legal Documents Law firms often print high volumes of legal contracts, case files and court documents that need to be both fast and precise.
- Retail & E-commerce
High-volume printing of invoices, receipts, shipping labels and packing slips.
Ready to make the right choice for your business's printing needs? Whether leasing or purchasing, it’s crucial to assess your unique requirements and financial goals. Contact FUJIFILM Business Innovation today for expert guidance and let us help you find the ideal printing solution (including colour laser printers) to support your growth and enhance productivity in Singapore.
References:
1https://www.verifiedmarketreports.com/product/printer-rental-market/1