Asset Management: Rental vs. Purchase

Asset Management: Rental vs. Purchase

Part 1: Asset Management – Evaluating Printer Rental vs. Purchase

Introduction to Asset Management in Printing Solutions

Asset Management: Rental vs. Purchase: Asset management involves strategic decision-making regarding the acquisition, use, and disposal of assets to maximize their value and align with the company’s overall business objectives. When it comes to printing solutions, businesses face a common dilemma: should they rent or purchase their printers? This decision impacts not only financial accounting but also operational efficiency and technological adaptability.

To understand more about other factors in printer rentals as a beginner, go see this introduction to printer rentals.

Understanding Printer Rental and Purchase

Printer Rental: Renting printers is a flexible option that allows businesses to use the latest printing technology without committing to a purchase. It often includes maintenance services, which can reduce administrative overhead and ensure printers are always in optimal working condition.

Printer Purchase: Purchasing a printer is a significant upfront investment but provides long-term savings and asset ownership. It requires businesses to manage maintenance and upgrades independently, which can increase the internal responsibility of managing the asset.

Comparing Costs: Rental vs. Purchase

One of the primary considerations in asset management is cost. Renting may involve a monthly fee, which includes not just the equipment use but also service and maintenance. Although this could mean higher expenses in the long run, it helps businesses avoid the initial capital outlay required when purchasing a printer outright.

Purchasing a printer can be more cost-effective over its useful life. However, it also requires budgeting for potential repairs, parts, and eventual replacement, which can be unpredictable and make expense planning challenging.

The Flexibility of Printer Rentals

Renting printers offers considerable flexibility, which is beneficial for businesses that experience fluctuating demands or need to stay up-to-date with the latest technology. Printer rental agreements can typically be adjusted to scale up or down depending on the business’s changing needs, ensuring that printing capacity always aligns with current requirements without overinvesting in hardware.

Technological Advancements and Printer Rentals

Technology in the printing sector evolves rapidly. Renting printers allows businesses to upgrade to newer models as advancements are made, which can be crucial for maintaining competitive advantage. This adaptability is a significant benefit of renting over purchasing, as the latter could leave a business with outdated technology that depreciates in value and functionality.

The Long-Term View: Depreciation and Value

For purchased assets, depreciation can affect the balance sheet. Printers lose value over time and through use, impacting financial statements and potentially affecting investment return. Rental, on the other hand, sidesteps issues of depreciation, as the printer does not appear as a depreciable asset on the company’s books, providing a clearer picture of the financial standing without the burden of asset depreciation.

Environmental Considerations in Printer Asset Management

Sustainability is increasingly important in corporate governance. Renting printers can be more environmentally friendly, as it often includes eco-friendly printers that are up-to-date with the latest energy efficiency standards. Additionally, rental agreements may cover recycling and proper disposal, aligning with corporate sustainability goals.


What are the main benefits of renting a printer?

The main benefits include lower initial costs, flexibility to change or upgrade models, and inclusion of maintenance and support, reducing the administrative burden on your business.

How does printer purchasing affect a company’s financials?

Purchasing a printer affects a company’s financials by adding a fixed asset to the balance sheet, which depreciates over time. This requires planning for long-term expenses including maintenance and eventual replacement.

Is renting a printer more sustainable than purchasing?

Renting can be more sustainable, as it often involves using the latest, most energy-efficient models and includes services for maintenance and disposal, which can help companies reduce their environmental impact.

Part 2: Operational Implications and Strategic Considerations

Streamlining Operations with Printer Rentals

When businesses opt for printer rentals, they gain not just equipment but also a partnership that includes full maintenance and technical support. This can significantly reduce the workload of internal IT departments, as the rental provider handles most issues related to printer upkeep. Such operational ease is particularly beneficial for organizations without the in-house expertise to manage complex printer fleets.

Financial Implications of Renting vs. Purchasing

Financially, renting printers can offer predictable budgeting advantages. Monthly rental fees are fixed, making it easier for businesses to forecast their expenses without worrying about unexpected costs associated with repairs or maintenance. On the other hand, purchasing a printer provides an asset but also requires provisioning for depreciation, potential repairs, and technology obsolescence, which can complicate financial planning.

Scaling Flexibility

Another strategic advantage of renting is the ability to scale printing capabilities in response to business growth or project-specific needs. This means companies can rent additional printers during peak periods and return them during slower periods, maintaining cost efficiency. Conversely, purchased printers might remain underutilized during downtimes, representing a sunk cost.

Risk Management in Printer Rentals

Renting printers also offers a form of risk mitigation. Businesses are less exposed to the risks associated with owning outdated technology. Rental agreements allow for easy upgrades to newer models, ensuring that a business’s printing capabilities keep pace with technological advancements and efficiency demands.

Advantages of Ownership

However, the benefits of owning a printer should not be overlooked. Ownership means control over the asset, including the ability to customize and utilize the printer without restrictions on usage or concerns about additional fees. For businesses with stable and predictable printing needs, purchasing may offer better long-term value.

Tax Considerations

From a tax perspective, purchasing printers can provide benefits such as depreciation deductions, which can reduce taxable income. Rentals, while typically deductible as business expenses, do not offer capital asset depreciation and might result in higher taxable income, albeit with simpler expense tracking and reporting.

Environmental Impact of Ownership vs. Rental

The decision between renting and purchasing also has environmental implications. Owning printers means a company is responsible for the end-of-life disposal of the equipment, which can have significant environmental impacts if not handled properly. Rental companies often take responsibility for recycling or properly disposing of old equipment, which can support a company’s CSR (Corporate Social Responsibility) initiatives related to environmental stewardship.


Can renting printers reduce operational downtime?

Yes, printer rentals often include service agreements that ensure quick repairs and maintenance, reducing potential downtimes compared to owned printers where servicing might take longer.

What should businesses consider when deciding between renting and purchasing?

Businesses should consider their financial flexibility, operational capacity to manage assets, long-term needs, and potential growth that may require scalable solutions.

How do printer rentals support business scalability?

Printer rentals provide the flexibility to adjust the number and type of printers based on current business needs, allowing organizations to scale up or down without significant investment or financial risk.

Part 3: Making the Decision – Rental vs. Purchase

Evaluating Business Needs and Goals

When deciding whether to rent or purchase printers, it’s essential for businesses to closely evaluate their specific needs and long-term goals. Factors such as the size of the organization, the volume of printing, budget constraints, and future scalability should all be considered. Understanding these elements can help determine which option—rental or purchase—aligns best with the company’s strategic direction.

The Case for Renting Printers

Renting printers may be the optimal choice for businesses that require flexibility and minimal maintenance responsibilities. This option is particularly appealing for:

  • Start-ups and Small Businesses: These entities benefit from lower upfront costs and the ability to adapt their printer fleet to rapidly changing needs.
  • Project-Based Organizations: Companies with fluctuating workloads, such as those in construction or event management, can adjust their equipment based on current demand.
  • Companies Prioritizing Cutting-Edge Technology: Organizations that need to stay at the forefront of technology without significant reinvestment can benefit from regular and cost-effective upgrades through rentals.

The Case for Purchasing Printers

On the other hand, purchasing printers might be more beneficial for:

  • Established Companies with High Print Volumes: Businesses with a consistent need for printing might find that purchasing and owning printers reduces long-term costs.
  • Organizations with Specific Customization Needs: Some companies require specialized printers that need significant customization, which can be more economically sensible if purchased.
  • Businesses Looking for Tax Advantages: The ability to depreciate assets and potentially leverage tax deductions can make purchasing an attractive option for certain firms.

Cost-Benefit Analysis

Conducting a thorough cost-benefit analysis that includes all associated costs—initial purchase or rental fees, maintenance, supplies, potential downtime, and even disposal—can provide a clearer picture of the financial implications of each option. This analysis should also consider the opportunity cost of capital expenditures on printers versus other potential investments.

Sustainability and Corporate Responsibility

For businesses committed to sustainability, considering the environmental impact of their printing solutions is crucial. Rental agreements that include eco-friendly practices, such as recycling and using energy-efficient models, might align better with such values than managing disposal and upgrades internally.


How often can I upgrade my equipment with a rental agreement?

Most rental agreements offer the flexibility to upgrade equipment as new models become available, which can be arranged annually or at the end of your contract term, depending on the terms set by your provider.

Are there any hidden costs in renting or purchasing printers?

When renting, it’s important to inquire about any additional fees for exceeding print quotas or for specific maintenance services. Purchasing may involve unexpected costs related to repairs and upgrades. Always review your agreement or purchase terms thoroughly.

What should I consider regarding printer disposal?

If purchasing, consider the environmental impact and costs associated with disposing of printers. When renting, check if the provider offers environmentally responsible disposal options.

Part 4: Advanced Considerations and Final Recommendations

Leveraging Technological Advancements

In a rapidly evolving digital landscape, staying updated with the latest printing technology can provide a competitive edge. Here’s how renting and purchasing compare in terms of technological advancement:

  • Renting: This option typically includes the opportunity to upgrade to newer models as technology advances. This can be crucial for businesses that rely on having the latest features to improve efficiency and output quality.
  • Purchasing: While purchasing allows a company to customize its equipment extensively, it may result in being stuck with older technology due to the higher costs associated with frequent upgrades.

Analyzing Total Cost of Ownership (TCO)

Understanding the Total Cost of Ownership is vital when making a long-term investment in printing equipment. TCO not only includes the initial cost but also factors in maintenance, supplies, potential downtime, and even the end-of-life disposal costs:

  • Renting: The TCO tends to be predictable with fixed monthly fees covering most associated costs, which helps in budget planning and cash flow management.
  • Purchasing: TCO can vary widely depending on the equipment’s lifespan, maintenance schedules, and the need for replacements. Companies need to prepare for potential large expenditures that may arise unexpectedly.

Strategic Asset Management

Effective asset management involves not just managing the costs but also optimizing the asset’s use throughout its lifecycle:

  • Renting: Provides flexibility in asset management, allowing businesses to respond quickly to changing needs without the burden of selling or refurbishing outdated equipment.
  • Purchasing: Offers the benefit of asset ownership, which can be advantageous for companies with stable and predictable printing needs. However, it requires a strategy for managing the asset’s lifecycle effectively.

Decision-Making Framework

To aid in the decision-making process, businesses should consider the following framework:

  1. Assess Needs: Determine the volume, frequency, and quality of printing required.
  2. Forecast Future Requirements: Consider potential business growth or changes that might affect printing needs.
  3. Evaluate Financial Resources: Analyze available capital and cash flow to determine whether to invest in assets or conserve resources for other areas.
  4. Consider Operational Flexibility: Decide if having the ability to upgrade or downscale easily is crucial for the business.
  5. Review Sustainability Goals: Align the decision with the company’s sustainability and corporate social responsibility policies.

Final Recommendations

For businesses valuing flexibility, minimal maintenance, and staying current with technology, renting printers is often the more suitable option. It offers the simplicity of a service that can adapt to the business’s evolving needs without the heavy burden of asset management.

For firms with stable demand, significant capital, and specific long-term requirements, purchasing might be the better choice. It provides control over the assets and may be more cost-effective over time, especially when tax deductions and depreciation are considered.


How can I minimize costs whether renting or purchasing?

Consider a detailed cost analysis that includes all potential expenses over the expected duration of use. Look for rental or purchase options that offer inclusive deals, such as maintenance and supplies.

What are the risks of not keeping up with printer technology?

Falling behind in technology can lead to inefficiencies, higher operating costs, and decreased competitiveness due to slower or lower-quality output.

How do I handle asset disposal if I purchase printers?

Develop a responsible disposal plan that complies with environmental regulations and considers recycling or donating old equipment.

To find out more about other printers, go check out the different types of printers for rent!

If you’re feeling a little conflicted about whether or not to opt for a printer rental, check out this comparison between printer rentals vs. purchasing!

Are you ready to make the best decision for your business regarding printer management? Marga Enterprises is here to assist you. Whether you’re looking to rent for flexibility or purchase for stability, we have the expertise and solutions to support your business needs.

For a consultation and to explore our comprehensive printing solutions, contact us today at 09171642540 or 09614481276, or via email at Partner with us to find out why we are the No. 1 Copier & Printer Rental Provider in the Philippines and how we can help you build a more efficient and sustainable business. Follow Marga Enterprises‘ posts in our Facebook page!

Scroll to Top