The Lease vs Buy Decision

Every business replacing their copier faces this question: should we lease or buy? There's no universal answer—it depends on your cash position, printing volume, tax situation, and how quickly you want to refresh technology.

Here's how to make the right choice for your business.

The Case for Leasing

Preserve Cash Flow

A mid-range A3 colour MFP costs £4,000-£8,000 to buy outright. Leasing spreads this over 3-5 years at £80-£150/month. For most SMEs, keeping that capital in the business makes sense.

Predictable Monthly Costs

Lease agreements bundle the machine, maintenance, toner, and repairs into one fixed monthly payment. No surprises. If the machine breaks, it's the supplier's problem.

Tax Advantages

Lease payments are 100% tax-deductible as an operating expense. You reduce your taxable profit by the full amount each year.

With purchasing, you claim capital allowances—currently 100% first-year allowances for most equipment under the Annual Investment Allowance (AIA). But if your profits are low, you might not benefit fully.

Technology Refresh

Copier technology improves every 3-4 years. Leasing lets you upgrade at contract end without being stuck with outdated equipment you own.

Included Maintenance

Lease agreements include all maintenance, parts, and toner (except paper). When you buy, you either pay for a separate maintenance contract (£300-£800/year) or handle repairs yourself.

The Case for Buying

Lower Total Cost (Sometimes)

If you print moderate volumes and keep equipment for 7+ years, buying can work out cheaper. But this assumes:

Low repair costs (not guaranteed for older machines)
Stable printing needs (no technology obsolescence)
Disciplined toner purchasing (avoiding overpriced OEM cartridges)

No Contract Lock-In

Lease contracts run 3-5 years with hefty early termination fees (typically 80% of remaining payments). Buying gives you flexibility to change suppliers or technology whenever you want.

Asset Ownership

You own the equipment. It has residual value (though copiers depreciate quickly—a 5-year-old machine is worth 10-20% of its purchase price).

Better for Very Low Volume

If you print under 1,000 pages/month, the minimum charges on most lease contracts make buying more economical.

Financial Comparison

Let's compare a Canon imageRUNNER ADVANCE C5540i (mid-range A3 colour MFP) over 5 years, printing 5,000 pages/month:

Leasing

Monthly lease + CPC: £145/month
5-year total: £8,700

Buying

Purchase price: £5,500
Maintenance contract: £400/year × 5 = £2,000
Toner costs (at typical CPC equivalent): £3,500
5-year total: £11,000

In this example, leasing saves £2,300. But if you kept the purchased machine for 8 years, the maths shifts in favour of buying.

Questions to Ask Yourself

1. What's your monthly print volume?

Under 1,000 pages: Consider buying a smaller device
1,000-10,000 pages: Leasing usually wins
Over 10,000 pages: Definitely lease—maintenance costs for high-volume purchased machines are unpredictable

2. How important is cash flow?

If preserving working capital matters, lease. If you have cash sitting idle, buying might make sense.

3. How long will you keep the machine?

3-5 years: Lease
7+ years: Consider buying (if you're disciplined about maintenance)

4. Do you want hassle-free operation?

Lease agreements include everything. When you own, you're responsible for maintenance contracts, toner purchasing, and repairs.

5. Is your business growing?

If printing needs might double in 2 years, lease. You can upgrade without being stuck with an undersized machine you own.

The Hybrid Approach

Some suppliers offer "fair value" leases—you can buy the equipment at market value at contract end. This gives you the benefits of leasing (predictable costs, included maintenance) with the option to own if the machine still meets your needs.

Our Recommendation

For most UK SMEs printing 2,000-15,000 pages/month, leasing is the better choice. The predictable costs, included maintenance, and technology refresh options outweigh the slightly higher total cost.

Buy only if:

You print very low volumes (<1,000 pages/month)
You have excess cash with no better use
You specifically need to own the asset for accounting reasons

Get Quotes for Your Situation

Not sure which option suits you? Local suppliers can quote both options so you can compare directly.

Get lease and purchase quotes →

Copier Lease vs Buy: Which Is Better for UK SMEs?