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ResourcesLeasing versus buying a copier for an Alberta business: cash flow, tax treatment, service and upgrade timing, explained in plain language.
Scott Townsend, UrFleet, Edmonton
It's one of the first questions we get from Edmonton offices replacing a multifunction copier. There's no single right answer, but there is a right answer for your business, and it usually comes down to three things: cash, how hard you run the machine, and how long you plan to keep it.
Buy if you print modest volumes, have the cash on hand, and plan to keep the machine for five years or more. Lease if you'd rather keep your capital working elsewhere, print heavily, or want to upgrade on a schedule instead of waiting for something to break.
| Buying | Leasing | |
|---|---|---|
| Upfront cost | Full price on day one | Little or nothing up front, fixed monthly payment |
| Total cost | Usually lower over a long life | Usually higher, because financing has a cost |
| Tax treatment | Depreciated over time as a capital asset | Payments are generally deductible as an operating expense |
| Upgrades | When you decide to buy again | Built into the end of the term |
| Risk of an aging machine | Yours | Ends with the term |
A mid-range colour multifunction can cost several thousand dollars. For a growing business, that's money that could go toward hiring, inventory or marketing. A lease turns it into a predictable monthly cost, which is often the deciding factor for owners watching their cash.
When you buy, the copier is a capital asset you depreciate over several years through capital cost allowance. When you lease, the payments are generally treated as an operating expense. Which one is better depends on your income, your year end and how you structure the business.
Copiers are built for a duty cycle. If your office prints far more than a machine was designed for, it wears out early, and an owned machine that dies in year three is an expensive problem. A lease paired with a service plan moves that risk off your plate.
Whichever way you go, the machine is only part of the cost. Toner, drums, fusers and repair calls add up quickly. With managed print, those are bundled into a cost per page, so you're comparing one complete number instead of guessing at the extras. Here's how cost per page pricing works.
Look at the term length, what happens at the end, any buyout amount, and whether service is included or separate. Ask whether the payment can change during the term. A good provider will walk you through all of it before you commit.
Tell us what you run today and we'll show you where the money goes and how to lower it. We respond within 2 hours during business hours.