11.1 Buying
Once a decision has been made about whether new machines are necessary, you need to think about photocopier prices to ensure they suit your budget. Fortunately, there are many different purchasing options available. Firstly, you could buy your printers or photocopiers outright. Buying would mean that you completely own the machines from day one, and costs can vary from around £200 for low-end devices to upwards of £100,000 for more advanced production machines and equipment.
A positive of buying is that it can help you keep on top of your budget, but it is important to take into account the cost of inks and toner. In some cases, the cost of consumables can be more expensive than the capital cost of the machine, therefore if not properly researched these extra costs could become very high. It is also notable here that the cost of ink and toner fluctuates constantly due to changes in markets and currency exchange rates. Reputable Managed Print Service providers will usually cover the costs of these fluctuations by setting consumables at a fixed fee. Where you buy your machines from should be thoroughly researched then, as familiar high-street resellers rarely provide Managed Print Services or provide consumables at a fixed fee.
Buying can also be seen as unnecessary for several reasons. Firstly, asset depreciation and disposal is key. If you buy your machine without any managed print service contracts it is ultimately your job once the machine has reached the end of its operating life to dispose of it. This can be difficult once a machine has lost most of its value as new buyers will not want to buy an old and weathered machine. Also, strict recycling laws now mean that machines have to be disposed of properly, which can often be costly in itself, however if laws are not followed higher costs and incriminations can be incurred.
Data protection is also important when considering machine disposal, for more information refer to section seven.
Technology is also constantly changing and a machine may be top of the range at the start of its operating life, but throughout its life newer and cheaper technology will be more useful and desirable. With this in mind leasing or renting is often seen as a better option, as most lease contracts allow you to hand back the machine and upgrade to a better one relatively hassle-free.
If buying is the route you wish to take, it may be wiser to buy your machine from an MPS provider, and then purchase toner as a service from the same provider. Due to the high cost of more advanced machines however, it may be more cost effective to lease your printers or photocopiers.
Contact us Contact us if you are interested in buying a photocopier
11.2 Types of leasing available
Firstly, what is the difference between leasing and renting? A lease tends to be more long term and contracted, whereas a rental agreement is more short term, typically from month to month.
Lease Purchase
Lease purchase, quite simply, is a type of ‘rent-to-own’ lease with regular payments, usually with a deposit paid beforehand that keeps quarterly payments low. The lessee would own the asset at the end of the contract, normally after a residual value lump sum is paid. This lump sum is based on the monetary depreciation of the asset and your predicted usage of the machine. Lease purchase then is essentially a ‘loan’ provided by the leasing company with VAT paid up front.
Leasing or Finance lease
Leasing or a finance lease (sometimes referred to as a capital lease) is similar
to lease purchase in terms of quarterly payments, but you do not own the machine at the end of the contract. This is normally seen as a positive as you do not have
to deal with the asset at the end, or own a depreciating asset. This means that essentially you are only paying for your use of the machine, and ownership remains with the finance company at all times. Finance leases can be for a fixed term or for a minimum term.
Operating Lease
An operating lease is a short-term lease compared with the relative life of the machine, it is also usually offered to educating bodies and schools. At the end of an operating lease the lessee usually has several options, including returning the machine, renewal of the contract or extending the original term of the contract. This is an off-balance sheet lease and is the only type of lease that certain sectors, such as education, can use as their funding comes from government.
Total Volume Rental Plan
Total Volume Rental Plans (TVRP) were leasing contracts that have now been replaced with Managed Print Service Agreement (MPSA) contracts. TVRP contracts worked via the lessee paying a prior agreed cost per copy instead of paying for the machine. This means that the customer did not pay a lump sum for their machine, but paid per page printed. TVRP lease agreements generally included the cost of the asset, service, and maintenance of the machine. Companies would normally choose this lease option as it produced one bill each month as opposed to separate bills for different aspects of a lease.
TVRP agreements could be taken longer-term, meaning payments can be kept low by spreading the payments over a longer period. Lastly TVRP contracts had what were essentially two contract end dates; a prior agreed end date based upon expected pages printed, and a second date that occurred once the print allowance limit was reached. This would have been useful for organisations that needed a certain amount of prints at a certain fixed cost.
Managed Print Service Agreement
Managed Print Service Agreements (MPSA) are very similar to TVRP agreements that are based on a minimum volume of prints over a minimum term of hire. MPSA contracts factor-in three key elements: the capital charge of the machine, the service charge of the machine, and the required volume of prints. The service charge is added to the capital charge to arrive at the total charge per print, this charge would be variable based on print volume.
MPSA contracts are set at a fixed price, so organisations tend to choose this lease if they are price conscious and cannot deal with unexpected costs. MPSA contracts are therefore better suited to organisations that wish to choose a lease based on volume as opposed to a fixed term agreement.
Renting
A short-term rental is where you pay, usually month-by-month, for your use or ‘hiring’ of the machine. This is normally only done short-term as rental costs can be higher than leasing costs, however renting offers organisations a lot of flexibility. Generally, organisations would choose to rent printers and photocopiers if they need to increase their print volume or output in the short-term, for example on a building site or if they need a machine for an event.
Contact us Contact us if you are interested in leasings a photocopier
11.3 Leasing Companies
Siemens
Siemens AG is a German company founded in 1847, and is an international provider of business-to-business financial solutions, headquartered in Berlin and Munich. There are four main core functions of Siemens: Industry, Energy, Healthcare, and Infrastructure and Cities. Industrial automation and healthcare products count for most of the company’s profits, however they also offer a wide range of other products, including: power generation technology, railway vehicles, water treatment systems, fire alarms, and PLM software, to name a few.
Tower
With 27 years of leasing knowledge, experience, and long established relationships, Tower is a leasing company that prides itself on service and approachability. They offer leasing alongside cash purchase options that suit any budgetary needs and requirements.
PEAC
The Pan-European Asset Company (PEAC) is an independent asset finance and leasing business, based in and catering mainly to Europe. The company provides competitive finance solutions and equipment leasing products and services across a broad range of industries. PEAC also strives to enhance its clientele by supporting new start and low net worth customers. The company utilises its existing platforms and contacts, which enables brokers to receive a consistent and strong level of service.
CF Capital
CF Capital PLC is an organically grown broking organisation, formed in 1988 in the UK. CF mainly offers leasing and finance options to both businesses and consumers within the machinery market, particularly printers, photocopiers, and software.
CF Corporate
CF Corporate offer ‘sales aid leasing’ solutions to a wide range of industry sectors through innovative leasing options. Sales aid leasing aims to integrate leasing options into a business’s operations in order to increase sales and profit. CF Corporate is part of the Investec Group of companies.
Shire
Shire Leasing was founded in 1990 as part of the Shire Business Group, and has since worked with distributors, manufacturers, and resellers to provide customers with a complete range of commercial service and finance solutions.
DeLagaLanden
DeLagaLanden (DLL) is a provider of asset-based financial solutions across the globe, primarily working in the Agricultural, Automotive, Clean Technology, Construction, Food, Healthcare, Industrial Office Technology, and Transportation industries. The company was founded as a credit company in 1969 by Rabobank and Interpolis.
BNP Paribas
BNP Paribas is a French multinational banking and financial services company headquartered in Paris. The company is one of the largest businesses in the world, originating in 1966 from a merger of two French banks (BNCI and CNEP). The organisation is split into two distinct business units. Corporate and Institutional Banking, and Retail Banking and Services.
Investec
Investec started in 1974 as a small leasing and financing business by Errol Grolman, Ian Kantor, and Larry Nestadt in Johannesburg. The company is now headquartered in Sandton, Central London, and Dublin. Investec provides an extensive range of finance options, products, and services today, focussing on three distinct client markets: Australia, South Africa, and the UK.
See the leasing companies we work with
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