The decision to buy, lease or rent a Forklift is based on very substantial factors and is not simply an arbitrary choice with minor ramifications. Buying, of course, implies a sense of permanency. Rental on the other hand depicts a temporary, passing state. Leasing, reflects something in-between – a long-term commitment leaning more on semi-permanency. Leasing is a good option for business owners who need the use of a forklift for more than a year, but are not inclined to sink large amounts of capital into purchasing the equipment.
Leasing a Forklift is generally considered better than buying one for several reasons. One is cost effectiveness. If you have a seasonal business, a temporary increase in workload, or are taking on a special project with a definite endpoint, leasing a forklift is probably the way to go. Instead of putting out $30,000 for a new machine, the money you save by leasing can be put into what matters most: growing the business.
Another advantage of leasing is getting the use of better equipment. In addition to freeing up capital, leasing a forklift usually results in getting better equipment than you could afford to buy. Leasing new or almost new equipment ensures that you will have a quality machine that won’t break down.
Finally, you have less responsibility for the equipment. With the purchase of a service or maintenance plan, if anything does go wrong with the leased forklift, the dealer will take care of it.
While leasing is cheaper than buying, it is still a considerable investment and should be thought over carefully. Some things to keep in mind before closing a lease deal is the different types of forklift leases – one being a “pure” or “true” lease (one with a term such as 36 or 60 months) after which the equipment is returned to the dealer. The other is a capital lease, which is considered a purchase and often gives you the option to take ownership of the equipment when the lease term expires. Both types of leases have tax implications that should be discussed with an accountant. The lease duration is also a factor to consider – based on how long you need it, it may be more cost-effective to rent.
In many cases, the total cost of your lease will be based on the vehicle price (if purchased new) and the length of the lease agreement. Thus, a $10,000 forklift can be leased for an average of $300 a month for 36 months, or $225 a month for 60 months. A $30,000 machine is $900 monthly over 36 months or $600 over 60 months.
One of the benefits of using the US Forklift Network to explore your options is that you will find multiple websites to guide you in your forklift decisions. The professionals at US Forklift Network attract reliable buyers, sellers, and distributors to their family of marketplace websites, helping you to make your equipment decisions wisely, efficiently, economically.