Lease or Buy: The Best Choice for Your Business

The Case for Buying Outright

Buying a photocopier means you own it from day one. There are no monthly lease payments, no fixed-term contracts, 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 and full ownership. You pay once, and the device is yours. This means no long-term lease obligations. You can also write down the asset 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. This 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. It helps preserve 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. 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. This 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, you have 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. This applies whether you lease or buy.

You must also consider the opportunity cost of tying up capital in a depreciating asset. Finally, factor in the eventual cost of disposal and replacement when the device reaches the 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. You also face the added disadvantage of a large upfront outlay. Plus, you are 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 gain 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. This could mean approaching the end of manufacturer support.

For businesses with multiple devices, leasing also simplifies fleet management. You can align all your lease terms so that devices are refreshed at the same time. This ensures 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 the end of the 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). It could also be suitable if you strongly prefer to own assets outright, have capital budget available, and no need to preserve cash flow. Alternatively, you might 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. We also provide 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. We will show you exactly what you are spending now and how much you could save.

Ready to explore leasing? View our photocopier and printer leasing options

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