Forklifts: Rent, Buy or Lease?

Whether you’re a contractor or a warehouse operator, there are many options available for getting a forklift. The question then becomes, how do you choose the right one? There is no “right answer” – in fact, this question should be answered with more questions:

• Do you need a long-term, more consistent-use solution? Or do you need to cover a short increase in seasonal demand?
• Do you need to maintain capital for unforeseen business events?
• Are ongoing forklift maintenance costs something you want to worry about?

Once you have answered these questions, you can begin to weigh the benefits and trade-offs of each method of ownership and conclude which option is the most effective for your needs.

Renting

If your operation needs a short-term solution, renting a forklift might be the way to go. Renting provides increased productivity when you need it while lowering your expenses. Additionally, if you’re unfamiliar with forklifts, it can allow you to test multiple models to decide which class suits your needs best. The following are more advantages of renting:

• Maintenance costs – These are generally included in the rental costs
• Flexibility – Renting can assist in meeting seasonality requirements without a long-term commitment
• Try before you buy – Figure out which forklift best suits your needs before you commit to one long-term
• Zero upfront costs – You are charged a consistent monthly fee with no initial investment

Leasing

The hybrid approach of renting and buying, leasing a forklift gives you long-term use but a low initial investment. Take advantage of lowered maintenance costs and advances in technology that could translate to increased productivity with equipment being replaced more frequently. Leasing can assist you in a variety of ways by:

• Lowering upfront costs – Save your capital for unexpected events
• No long-term commitment – Upgrade/change your equipment at the end of the lease term
• Flexibility – Grow or shrink your fleet size based on demand more frequently
• Lower Costs – monthly costs on leased forklifts generally tend to be lower than buying or renting

Buying

The best answer for long-term needs is buying a forklift which, results in complete ownership and no restrictions. This option is typically suitable for larger operations or warehouses, using their forklift regularly for 15+ years and are able to handle maintenance costs associated with aging equipment. Additional benefits of this option are:

• Machine availability – Your forklift is yours to use at any time
• Warranty – New forklifts are equipped with original manufacturer warranty
• Tax Deductions – Receive deductions associated with the depreciation of the asset
• No restrictions – Hours of use, operating condition, or maintenance providers

Choosing the right option for your business requires careful consideration. Find out more about our forklift financing options or reach out to a Brandt financing specialist for a customized solution.