Photocopier Leasing vs Buying: Which Is Right for Your Business?

If your business needs a new photocopier or multifunction printer, one of the first decisions you will face is whether to lease or buy. Both options have their place, but for most businesses, one is significantly better than the other. Here is an honest comparison to help you decide.

The Case for Buying Outright

Buying a photocopier means you own it from day one. There are no monthly lease payments, no fixed term contract and no ongoing commitment to a leasing company. For businesses with available capital and relatively low print volumes, buying can make sense.

The main advantages of buying are simplicity (you pay once and the device is yours), no long term lease obligations, and full ownership of the asset which can be written down for tax purposes as a capital expense.

However, buying does mean a significant upfront cost. A quality A3 colour multifunction device can cost several thousand pounds, which is a substantial outlay for most small and medium sized businesses.

The Case for Leasing

Leasing a photocopier means you pay a fixed monthly amount for the device over an agreed term, typically three to five years. This spreads the cost of the hardware into manageable monthly payments, preserving your cash flow for other business priorities.

The monthly lease payment covers the device itself. It is a predictable, fixed cost that makes budgeting straightforward. At the end of the term, you can upgrade to a newer device, extend the agreement, or return the equipment.

For schools and public sector organisations, leasing is particularly attractive because it avoids the need for capital budget approval. A monthly revenue cost is far easier to get signed off than a lump sum purchase.

The Service Agreement: Separate from the Lease

Whether you lease or buy your photocopier, you will almost certainly want a service and maintenance agreement alongside it. This is a separate contract from the lease and typically works on a cost per print basis.

With a cost per print service agreement, you pay a set amount per page that covers toner, parts, engineer visits and all consumables. The more you print, the more you pay. The less you print, the less you pay. It is a fair model because you only pay for what you actually use.

This means the total cost of running a photocopier has two components regardless of whether you lease or buy: the hardware cost (either a lump sum purchase or monthly/quarterly lease payments) and the service cost (a cost per print agreement covering toner, maintenance, parts and support).

The Hidden Costs of Buying

Most businesses that buy a photocopier outright underestimate the total cost of ownership. The purchase price is just the start. Over a typical five year lifespan, you also need to factor in the cost per print service agreement (which applies whether you lease or buy), the opportunity cost of tying up capital in a depreciating asset, and the eventual cost of disposal and replacement when the device reaches end of life.

When you add all of this up, the total cost of buying and running a photocopier over five years is often comparable to leasing, with the added disadvantage of a large upfront outlay and being committed to aging technology for the full period.

The Hidden Benefits of Leasing

Beyond the obvious cash flow advantages, leasing brings benefits that are easy to overlook. You get access to newer, better technology than you might be able to afford to buy outright. Modern devices come with better security features, faster print speeds, lower energy consumption and more advanced scanning and workflow capabilities.

At the end of the lease term, you simply upgrade to a new device with the latest features. If you had bought outright five years ago, you would be stuck with a device that is now outdated and potentially approaching end of manufacturer support.

For businesses with multiple devices, leasing also makes fleet management simpler. You can align all your lease terms so that devices are refreshed at the same time, ensuring a consistent and modern print environment across the business.

Cost Per Print: The Great Equaliser

Here is the thing that surprises most people: regardless of whether you lease or buy, the ongoing running cost is the same. The cost per print service agreement is based on your actual print volume, not on how you acquired the hardware. So the day to day cost of toner, maintenance and support is identical either way.

The real difference between leasing and buying comes down to one question: do you want to pay several thousand pounds upfront for the hardware, or do you want to spread that cost over monthly payments? For most businesses, spreading the cost is the smarter financial decision.

Which Is Right for You?

As a general rule, leasing makes more sense for most businesses. The preserved cash flow, access to newer technology, and flexibility to upgrade at end of term outweigh the simplicity of buying for the majority of organisations.

Buying might make sense if you have a very low print volume (under 500 pages per month), you strongly prefer to own assets outright, you have capital budget available and no need to preserve cash flow, or you only need a basic desktop printer rather than a multifunction device.

If you are printing more than 1,000 pages per month, have multiple users sharing a device, or need features like scanning, copying and secure print release, leasing is almost always the smarter choice.

How XOS Can Help

XOS offers flexible photocopier leasing from 12 to 60 months alongside a comprehensive cost per print service agreement covering toner, parts, maintenance and engineer visits. Whether you choose to lease or buy from us, we can provide a service agreement that keeps your devices running and your costs predictable.

Not sure which option is right for you? Contact us for a free audit and we will show you exactly what you are spending now and how much you could save.

Contact XOS at xosuk.co.uk or call 01472 355880.