Choosing a Business Phone System: Should You Buy New, Used or Lease?
Buying business phone systems can be a major expenditure that can be paid outright or spread out through rental or lease plans. The issue becomes complicated because there is plenty of used equipment on the market as well that poses attractive options for some businesses. Considering that current systems offer many features and options that may or may not be worth it for your business, picking the right system is challenging. Should you buy new or used? Should you buy, lease, or rent the equipment?
Answering the question involves a realistic look at your business needs. Here are four basic questions you should ask:
- How much technology do you need in your phone system?
- Will your technology needs change?
- Will you staff change drastically?
- How much money can you afford to have tied up in the system?
Should You Acquire New Or Used Equipment?
Technology quickly becomes obsolete. As with most electronics, business phone systems have far more features than the average business will use or take time to learn to use, but the changing technology behind phone systems can impact the efficiently, reliability, and ongoing costs for the system.
These realities should play into your decision about how to acquire your system and about whether it should be new or used. Used equipment offers good value, but may be behind the times and out of warranty. The older the equipment is, the more difficult it is to obtain parts or get service. If you have a stable business where you expect no major growth and can live without the latest technology, a gently-used system might work out well for you. Many technology companies sell and service used systems and can tell you the history of them, which makes a used purchase a safer bet than buying from a third party.
What About Renting Or Leasing?
Buying allows you to lock in technology that becomes part of your capital equipment. You can write off the purchase in the first year of purchase, and not be worried about monthly payments for the equipment, although maintenance might incur a monthly charge. Purchasing a system outright is the least expensive way to buy, as you pay no interest. The downside is that the out-of-pocket costs for a buying a system can be large, while tying up scarce resources.
Should You Lease?
Leasing a system commits you to a series of convenient payments, which allows you to write off the costs as a monthly operating expense. You pay nothing up front, while having access to a modern system. Depending on what the terms of your lease are, you can pay fair market value (FMV) or %1 and own the systems very economically at the end of the term, or turn it in and acquire new equipment. Leasing helps you access state-of-the art equipment that may be more expensive than what you could afford to buy.
Should You Rent?
As with leasing, renting offers you the chance to have the latest equipment in return for a monthly payment and no long-term commitment. The flexibility makes renting a good option for long or short term projects and for seasonal businesses. Renting is tax deductible, but renting equipment is costly in the long run. However, it can be the perfect solution for some businesses. Even growing businesses unsure of their eventual needs may choose to rent rather than being encumbered with a system they own and do not need.
Selection And Service When Your Need It
When you need business phone systems in the Dallas/ Fort Worth Texas metro area, Mid Cities Data Comm offers new and used systems for sale, lease, or rent. We are proud to offer top rated ESI line of phones for your new Internet-based system, and will work with you to select the right type of system for your business and then do the SIP trunking, cabling, and installation you need. For information, call us today at (800) 603-2013 or contact us via our website.