Should you Rent, Lease or Buy a Forklift?
Every fast-growing business with a Materials Handling element (warehouse, shipping centre, production floor) will reach a critical turning point. When this day arrives, business owners will understand their workers can't measure up against the size, weight and bulk of the products and pallets that need to be transferred, from one place to another.
Forklifts are expensive pieces of equipment. The decision to rent, lease, or buy a forklift or an entire fleet depends on your business needs.
What is the best option to go for is it Renting, Leasing or Purchasing?
If your business is facing a temporary surge in works or it is peak season, renting is most probably the way to go. Otherwise, you will not be getting the full return on the investment put to buy the equipment.
Tip: One should not buy a forklift until it is vital and will be used regularly.
· Pay only for the limited time needed (peak periods)
· No large down payment
· Less expensive than lease
· Rents considered as tax-deductible operation expense
· Machinery breakdown & replacement would be available
· Access to new/er forklifts
· Renting rates are higher than those of leasing since it is normally rented for a shorter period
· Limited availability of forklift specifications
Cost of leasing a forklift may vary depending on the machine's specifications and buying cost. Leasing usually works on a flat monthly rate for a specific period. The lender owns the equipment, but at the end of the leasing period, the lessee can opt to purchase the forklift, return it or lease another model.
· Staying current with newer models, which includes safety and productive benefits
· Testing new models before purchasing option
· Low initial cost compared with purchasing a new model (no large payment upfront)
· More expensive than buying a forklift in the long-run
· Overuse penalties
· Maintenance and repairs may cost you time and money, unless they are included in the lease package
When buying your forklift, your business has this asset to use it whenever need be. This will help you in your everyday rush jobs that might arise unlike leasing and renting which usually you need to wait between 1-2 days to have the forklift. Another reason why one should buy a forklift is that you expect to use this machinery for a long time, which make this purchase feasible.
· Train staff to use it expertly and an efficient and safe manner
· An asset on your books as capital equipment
· Opting for a second-hand forklift to get a cheaper deal
· Equipment reliability
· Ability to handle long hours
· Maintenance costs
· The model might get out-dated soon
· Value of forklift will decrease as soon as it is being used
As you can see, there are some great reasons to rent, lease and buy your next forklift. Once you have decided on the best option for your business, or you need more help, why not reach out to us on our website or give us a call on +356 7931 3233?
Here at Forklifters Malta, we have a great range of new & used forklifts to hire or buy. With a great selection of models and specifications, we will make sure you choose the right one for your purpose.
For more information about our services check out our forklift section on our website https://www.360retailsupplies.com/forkliftersmalta or contact us on our facebook page https://www.facebook.com/ForkliftersMalta