Investing in a forklift represents a substantial capital expense for your company. To ease that burden, you have a variety of options for choosing how to finance a new or used forklift. In this post, we’ll explore three of those possibilities—buying, renting, and leasing—so you can decide which best fits your organization’s needs.
Buying a Forklift
We’ll start with the most straightforward purchase option: buying a forklift. When purchasing a forklift, either with cash or by financing, you can maximize your investment by leveraging a variety of factors. A purchased forklift may be eligible for tax deductions unavailable if you rent or lease. At the same time, you can customize and modify the lift to fit your needs without having to worry about the restrictions of a third-party contract.
In the long term, it’s easier to recoup your investment on a purchased forklift. When properly maintained, forklifts hold their value and can be resold to provide a partial return on the initial purchase price. Ultimately, buying a forklift offers better long-term value since financing costs are generally lower than rental fees. If you’re planning to keep the forklift for several years or longer, purchasing is often the smartest financial move.
Renting a Forklift
For businesses that only need a forklift on a seasonal or temporary basis, renting a forklift may be the best option. Renting offers the ability to get the equipment your team needs without locking you into a long-term commitment. Rentals are typically paid on a monthly basis, so you can return the forklift when you no longer need it or even swap it out for another forklift.
Forklift rental companies carry a stock of rentable forklifts, so you don’t have to deal with the long lead times of having a new forklift shipped to you. That means rentals allow you to get the equipment you need right away with minimal downtime. Since the rental company covers maintenance costs, you also don’t have to worry about covering the cost of maintaining or repairing the lift.
Leasing a Forklift
With a forklift lease, your organization can take the middle ground between purchasing and renting. Because you’re simply financing the depreciation of the lift over a predetermined period, monthly costs are frequently lower than either buying or renting. Your organization also gains access to late-model lifts with the latest features and capabilities.
Forklift leases make it easy for your business to scale the size of your fleet to better meet your changing needs. If your team puts a lot of wear and tear on forklifts over short periods, an equipment leasing contract is likely the best way to get the most value out of your fleet. That’s because your team will always have access to the latest forklifts, and you won’t have to worry about recouping your investment.
Start Exploring Your Financing Options
If your business is in the market for a new or used forklift, the experts at Brennan are here to help you explore your financing options. We also help you find lifts from brands such as Taylor-Dunn, Cascade, and Hyundai. Whether you’re interested in buying, leasing, or renting a forklift, we specialize in delivering turnkey forklift solutions. We’ll help you get the most value out of your investment with a lift that’s optimized for your operations.