Procuring the right equipment for your business is crucial for successful operations. A forklift is one of the most versatile pieces of equipment that finds applications in numerous industries. When you decide to look for a forklift for sale for your business, the process can be draining and perplexing.
However, a little understanding of the options and your requirements can make the job much easier for you. You can either buy or rent or lease a forklift. Each of these procurement methods has its unique benefits. Here we outline the advantages of each method to help you make a more informed decision.
- Reasons to buy a forklift
- Better ROI
One of the most valuable ways to elevate your returns on investment on equipment is resale. Buying a new forklift is the only method that allows you to draw reselling benefits. The returns however depend on how well you have maintained the forklift and what its residual value turns out to be.
- Optimum customization
Buying a new forklift gives you complete ownership of the equipment. You can make as many modifications as your want. You can also get it customized at the factory for your specific applications.
- Unaccountable ownership
In the case of rental or leased forklifts, you have to return them after a certain period. You have to maintain them in a reasonable condition according to your contract. Buying a forklift liberates you from such liability.
- Benefits in tax
Many state laws allow you to deduct the price of a bought forklift as an expense while evaluating taxes.
- Reasons to rent a forklift
- Use when you need
Renting forklifts allow you to expand your fleet for seasonal purposes. You only have to pay for the time you need them which is a great economical benefit.
- Short-term commitment
Renting avoids long-term commitments. Most rents are paid monthly, you have the opportunity to return or swap forklifts every month.
- Quick availability
New forklifts take time to ship from the factory. Conversely, forklift dealers have sufficient stock of different types of equipment. You can rent one without having to wait longer.
- Saving on maintenance cost
Generally, rental contracts include planned maintenance. Meaning, a technician would repair for normal wear and tear for no additional cost.
- Reasons to lease a forklift
- Fixed replacement cycles
Replacement cycles are predetermined. However, you can choose for shorter or longer cycles as per your operational needs. Shorter cycles are better for more fluid companies with high-throughput applications.
- Reduced monthly expenses
Lease is a better option for startups or small businesses that can accord lesser monthly expenses. As compared to buying or renting, leasing requires smaller monthly payments leaving more cash with you.
- Limited paperwork
If you own a forklift fleet, you would require to maintain a colossal amount of paperwork. Leasing simplifies this documentation and also reduces the burden of fleet management duties.
- Most recent models and capabilities
Procuring a leased forklift allows you to keep rotating your equipment stock. You can periodically swap your forklifts with new ones with the latest features and smarter technology.
- Flexibility in fleet
Your business needs keep changing and a lease is a great way to accommodate those changes. At the end of your lease, you can renew it with adjusted terms such as increasing or decreasing the fleet size or optimizing the mix.