In our previous article, we discussed the benefits of renting industrial printers. However, even though renting offers a lot of benefits, it’s not always the best option for every situation. Below are some advantages that buying marking and coding equipment can offer business owners.
(Potentially) save money.
Though renting marking and coding equipment costs less up-front, it may end up costing you more in the long run. For example, leasing a $4000 printer for three years, at $140 per month, might end up costing you over $5,000—much more than it would have cost if you had purchased it outright. Therefore, be sure to do the math before signing up for a long lease—if you need the item for a long time, you could own it and save money.
Handle emergencies ASAP
One of the top advantages of renting printing equipment is the fact that the vendor is the one responsible for maintenance and repairs. However, even the best and most responsive vendors will take some time to get a replacement part to you. As a renter, you will also be at the mercy of someone else’s schedule and availability, and even the vendor’s choice of repairman. If you own the machine, you will be able to have more control over when it is serviced, how it is serviced, and who services it. You will also have everything you need, like replacement ink or parts, right in your own shop.
Buy what you need with less hassle
Buying equipment tends to be simpler than renting it. You simply decide what you need, and go purchase it. However, if you decide to lease marking and coding equipment, you’ll have to complete paperwork and provide detailed, updated financial information to the leasing company. You may also have to share how and where the leased equipment will be used. In addition, you will probably have to negotiate lease terms, which can be another headache. While we try to offer fair terms to our Rent-a-Coder program customers, the same cannot be said of every marking and coding equipment supplier. If you don’t negotiate well during the leasing process, you might end up paying more than you should.
(Possibly) get some return on your investment
While it’s true that all technology becomes outdated over time, and you will probably not be able to sell your machine for anything close to its initial price, at least you might be able to recoup a small fraction of the cost. If you rent a marking and coding machine, however, you won’t be able to receive any return on your investment whatsoever (other than the benefits you receive from using it.) If you buy a machine, and keep it in good condition, you might be able to count on some resale value, even with depreciation.
Know the machine’s full history
At SSI, we take meticulous care of every machine we rent out. However, not every marking and coding machine rental company is the same. Some vendors might forget to, or neglect to, make the regular tune-ups and inspections that all machines need to continue running at optimum capacity. If you buy a new machine, though, you will know its full and complete history—everything that has been done to it, and everything it has been asked to do. This reduces the risks of unnecessary repairs and downtime. You will also have total control over how it is maintained and how often it is maintained, further reducing the risk of machine failure.
Don’t get locked into a lease
In our previous article, we wrote at length about another advantage of leasing industrial printers—the renter is able to constantly access the latest technology at little cost or risk. However, if you enter a very long lease term, you might find yourself stuck with an outdated machine instead of the latest model to hit the market. Therefore, if you decide to rent your equipment, make sure that your lease is flexible enough to accommodate market shifts. If it isn’t, you may be better off buying a machine that you can later sell when you need to.
Take advantage of tax incentives
We are listing this item last because it isn’t really an advantage over leasing your equipment—just something to be aware of. According to section 179 of the IRS tax code, businesses can deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that whether you lease or buy a piece of qualifying equipment, you can deduct the full purchase price from your gross income.
This is significantly different from years past, when businesses who bought their equipment had to write it off a little at a time through depreciation. For instance, a company that spent $50,000 on a tractor would only be able to write off, say, $10,000 a year for five years. Section 179 has made a big difference in evening the score between leasing and buying. Now, no matter which decision you make, you will be able to write off the full cost of the machine or the full cost of the lease in the same year. (Don’t just take our word for it, though—be sure to check with a tax specialist or financial advisor before making any big decisions).
Conclusion: Lease or buy, SSI has your back
Need to rent or buy marking and coding equipment in Virginia or beyond? Call SSI Packaging! Our Richmond-based small business has everything you might need to pack, mark, and track your products. Our Rent-A-Coder program allows businesses to access what they need, when they need it. And if you think buying is the better option for you, we can help you select the machine that will best accommodate your operation. If you’re interested, please call (804) 649-1111 to speak to our product specialist, or email us here!