Cost Savings (Continued)

Most businesses lease a copier, upgrading every 3-5 years.  There are two types of leases: Fair market value lease (FMV), where if you choose to buy the copier at the end of the lease, you pay the fair market value.  With a Dollar buyout lease, you own the copier at the end of the lease (for $1).  FMV leases have a lower monthly payment.

However, it is always advisable to look at what it would cost to purchase the copier, rather than lease it.  In most leases that we have analyzed, the business will pay 1.5 to 2.0 times the actual cost of the copier.  If financing is the only way to purchase the copier, contact a local bank for a loan.  The interest rate on a lease (which is hidden) is always much higher than what your bank will offer.

Another cost savings in purchasing a copier vs leasing is in property taxes.  When you lease, the leasing company owns the copier not the church.  Since the lease company is required to pay property taxes, this cost is passed on to the church.  This can be a significant additional cost on a high-end copier.

If you purchase the copier, you can still get a maintenance contract if one is needed.