There are different types of copiers with different functions. As a business you need to know which one works best for you. There are several different options you can take to purchase a copier. Knowing the options will help better educate you on which one to choose.
When buying a copier there are 3 options you can choose from. You have FMV, $1 Buy Out, or Outright. All options are great but will depend on what works for your financial budget and day to day operations.
FMV also known as Fair Market Value lease is where you can pay a lower monthly fee for a duration of time. At the end of the duration you have the option to either pay Fair Market Value of the copier to keep the copier. Or you can determine at the end of the duration if you want to trade in your copier and upgrade it for another lease. Some businesses do this to pay the low monthly fee as that is what they can afford at the time. Plus they are unsure of any changes in their work environment that may require they upgrade or downgrade to a different copier at the end of the lease duration. With this option please be aware that you do have about 60-90 days to inform your lease vendor what you plan to do at the end of the lease duration. If you don’t then you may get stuck in an automatic renewal.
$1 Buy out is for those that want to pay a higher monthly lease payment for a duration of time. At the end of the duration you then have the option to buy the copier for $1. Some businesses do this as they know this is the copier they need for their environment and they don’t plan on upgrading or downgrading the copier at the end of the lease duration. This option is great for businesses that want to stick with the same copier for the duration of the lease as well as try and reach the life cycle of the copier. A copier’s life cycle ranges from 7-10 years. Lease durations typically range from 2 years to 5 years. Businesses that choose this option know they have funds to afford the higher monthly payments versus expensing the purchase outright. Keep in mind that if the work environment does change and you need to upgrade or downgrade your copier it would have been more cost effective to go with FMV. FMV has the lower monthly payment.
Outright means exactly that. You are purchasing your copier outright. There is no lease payment. This is for businesses that have the funds to expense upfront and don’t want a lease. Most businesses that choose this option understand that they now own the copier outright and they intend to use the copier until it dies. If you do purchase outright and need to upgrade or downgrade your copier it would be hard to do so. As you will then need to find someone to purchase the copier you no longer have use for.
Each option has it’s own pros and cons. It is very important that you review these options. Knowing which options to choose helps with your financial budget planning. Contact C Three Business Consultants to help you find the right copier equipment and the right purchase options.