Procuring office equipment is not only through direct purchases. Recently, you can also get them through lease or dollar buyout; however, there will be similar advantages and disadvantages to each option which you need to consider.
Leasing copiers may not be a popular option because most businesses think that the process is a complex one, not to mention the lease rates. In addition to the contract agreement, effective on 2019 there will be a new set of laws governing leases. To understand your options, we will differentiate Fair Market Value or FMV, dollar buyout and, purchases.
If you are in Jacksonville and you are looking for a Copier in Jacksonville for your business, you may contact Clear Choice Technical Services in Jacksonville. You can ask about Copier Leasing Services in Jacksonville, Copier rental services in Jacksonville, and Copier Repair in Jacksonville.
Fair Market Value
Fair Market Value is also known as the operating lease. It is the lowest standard amount of owning a piece of equipment, which needs to be paid on a monthly basis. FMV is similar to renting it for a fixed period, only that the equipment leased will not be considered as assets of your company. Therefore, it will not be included on the business balance sheet.
If you are looking for a budget-friendly option, this is the best way to go since you are not paying the full price of the copier or the printer. You only have to pay for the period specified in the contract unless you decide to keep it after the term.
Once the lease contract ends, you can either purchase the copier from the leasing company for a price deemed to be its fair market value. Your other option is to return the equipment to the company or extend the contract if you need to. Leasing reduces the worry of disposing of the equipment after the lease period, and you do not have to worry about obsolescence.
Dollar buyout option is when you buy the equipment for just $1 after the lease period. The monthly payments in this contract would be higher compared to FMV, but when the contract ends, and you wish to keep the copier, you only have to pay a dollar for it. Another difference is the tax benefits. When you lease through FMV, the leasing company is considered the owner of the equipment whereas with the dollar buyout you are the owner, so you get to receive tax benefits applied to the equipment.
Compared to lease contracts regarding copier lease rates, purchasing a copier outright means no monthly payments required from you. After the purchase, you will be the sole owner of the copier, and it will immediately be considered an asset and addition to your business balance sheet. Since you own it, you will receive the tax benefits applied to it. On the other hand, owning one means securing the supplies needed for paper and toners on a regular basis. Maintenance is also required to ensure that the machine is in its best working condition and that there will be no lease contracts to worry about this time so you can use the machine for as long as you need it. However, you need to designate a particular space within the office to become the copier’s permanent place.