Initially published in 2011 and updated in 2023.
In a Post-COVID world, digital workflows have become more commonplace amongst AEC firms and their project partners. A primary driver of this is the dynamic function of employees working in a hybrid office/remote format. Unfortunately, this shift has led many to believe that almost all work happens on a screen. However, there is still a need to produce and use large paper construction plans.
This continuing need means that many small to medium size AEC companies still entertain upgrading their wide-format tech for various reasons – upgrades, end-of-lease trade-ups, and expansion. Therefore, equipment leasing remains a very viable option for many businesses.
But, when it comes to leasing, options can be a bit dynamic and confusing, so make sure you understand all the factors before deciding which option suits you best.
"It is well accepted that a plotter or wide-format MFP system is not a business asset that appreciates: This type of technology depreciates faster than the vast majority of purchased assets. So, save purchases for assets that either appreciate or depreciate less."
Leasing vs. Purchasing Advantages
Leasing a large-format printer is an excellent option for AEC companies and other businesses that need to print large documents without breaking the bank.
Some specific benefits of leasing that companies take advantage of include budgeting, tax efficiency, upgrading technology, preserving business capital, flexible payment options, and return on investment.
Leasing allows you to maintain cash flow, keep up with technological changes, and enjoy the tax benefits of a lease agreement, all while increasing productivity and saving money in the long run.
Many businesses earn revenue over time - to pay as you use it makes sense: Why pay out in one lump sum when you can make small, manageable payments with leasing? You can pay for the portion that you are using at the time.
Payments made throughout a lease arrangement are unaffected by changes in interest rates; you can, therefore, accurately plan for lease payments in advance.
And as cash flow can be forecast, the recurring cost of the leased device can be compared with projected revenue and profits generated by using the equipment during specific projects and standard business operations.
Leasing can reduce your overall tax bill, as the cost is deductible as a business expense reducing the net worth of leasing the equipment. This factor will help determine whether to rent or lease rather than buy.
If you lease a plotter, you do not have to pay the cost immediately, and you may reclaim everything you pay out on a 'by payment' basis - monthly, quarterly, or annually.
It is well accepted that a plotter or wide-format MFP system is not a business asset that appreciates: This type of technology depreciates faster than most purchased assets. So, save purchases for assets that either appreciate or depreciate less.
Leasing allows up-to-date office equipment installed as required and less affected by budget restraints. As a result, large-format printer leasing improves cash flow and creates a hedge against inflation, depreciation, and obsolescence. Importantly, it allows you to take advantage of technology improvement at a time of your choosing and at a reasonable cost.
By contrast, a business that owns its office equipment can only upgrade by reinvesting and disposing of the existing asset.
It makes sense to use business capital for expansion or appreciating business purchases. Leasing for office technology preserves precious resources for these purposes and other business opportunities. Furthermore, you can maintain your existing bank lines and optimize your use of commercial credit sources.
You can choose the option that makes for the most comfortable leasing arrangement; typically, leases are written for 36 or 48-month terms.
Giving immediate access to the printing equipment you need, the necessary speed, and the right multi-functional technology via payments your business can handle without the large deposit generally associated with an outright purchase.
Return on investment (ROI)
Let the new equipment provide you with a return ... The reason for a new wide-format system is to increase productivity; with leasing, you can use the cost-saving and increased production ROI to make periodic payments.
FAQs about Leasing Plotters
Who retains the equipment at the end of the plotter lease?
The title to the goods remains with the finance provider, which means the equipment does not show on your company balance sheets and, therefore, does not apply to the expected value depreciation over a fixed period.
This gives you the advantage of staying in touch with the latest technology by changing your equipment towards the end of your lease.
Can we upgrade before the wide-format printer lease agreement expires?
Yes. An equipment lease allows businesses to keep up with technological changes, as your original installation can be altered during or at the end of your lease period. The usual reason for this is due to a customer's business expansion and changing needs.
Why should I choose large-format equipment leasing?
All sectors of the US economy take advantage of business equipment leasing; it is the most popular choice for small businesses that need a mid-to-high volume plotter or multi-function system.
This is like how a large multi-national organization prefers to keep tighter control of its finances and enjoy the tax efficiency and upgrade opportunities of a lease agreement over purchasing.
How does plotter leasing work in practice?
Leasing is a contract between a finance company and a customer, giving the customer use of the equipment on rental payments over a period. For example, when you lease a printer for office use, you make regular (usually monthly) payments instead of a large capital outlay.
What about Large Format Printers for Rent?
Exploring options such as large format printers for rent can be helpful for many businesses. Renting these essential pieces of technology provides financial flexibility, enabling companies to maintain cash flow while accessing the necessary equipment.
The appeal of renting is particularly noticeable during peak project times when temporary demand increases or for specific one-off projects that require unique equipment. The benefits of renting large format printers align with leasing, offering payment flexibility, the opportunity to upgrade technology, and the preservation of capital.
However, renting can provide even greater flexibility at the end of the term. Customers can trade up to the latest technology or return the equipment without penalties, allowing for high adaptability to changing business needs.
In addition to this, renting can offer rapid access to technology. You can set up rentals swiftly, making it an optimal choice for businesses needing immediate access to large format printers for rent.
Moreover, renting provides substantial tax efficiency. The cost of renting equipment can be fully deducted as a business expense, potentially leading to significant reductions in your overall tax bill.
This benefit, coupled with the maximum write-off potential regarding lease payments, provides businesses with an advantageous way to manage their budget, allowing them to allocate resources more effectively towards areas of growth and investment.
Overall, renting large format printers offers a beneficial alternative that combines flexibility, financial efficiency, and adaptability to the evolving needs of AEC firms.
Why lease or rent a printer rather than purchase?
The leasing's cash flow and tax relief benefits provide an extreme case against cash purchases. If you buy equipment outright, the capital invested becomes, in effect, tied up in a depreciating asset.
Plotter leasing, on the other hand, allows you to save resources for other purposes or opportunities. To make the right decision for your business, speak to your accountant, who can advise on what is financially best for your company.
Plotter Lease Cost Summary
Leasing can be an excellent method of upgrading technology without the need for large amounts of capital:
- Pay little or no money down in most cases.
- Flexible – choose the contract length that best balances functionality and monthly payment.
- Upgrade option – most leases allow you to trade up to new, better technology at the end of the lease.
- Savings – Besides eliminating capital expenses, leasing provides a way to get extra tax benefits.
Explore the full line of Canon Color Plotters.
Explore the full line of HP DesignJet Plotters.
You Can Count on TAVCO for Plotter Leases
In the complex landscape of AEC, you need a vendor as committed to quality and reliability as you are. TAVCO brings you just that—with high-performance tools like our durable large-format plotters, cutting-edge 3D scanners, and innovative software solutions.
We build long-term relationships fortified by unwavering support and innovative solutions that keep you ahead of the curve. Plus, when you have questions or need advice—including cost-effective options—you can always speak directly with a live TAVCO specialist, not a bot or an automated attendant.
Ready to take the next step? Chat with a TAVCO specialist today to tailor solutions for your unique needs.
🛒 Or explore our range of products at www.tavcotech.com.
Other notable web pages about leasing plotters and office equipment:
June 20, 2023