Forklifts are essential pieces of equipment commonly used in industrial lifting. However, they are quite expensive to purchase and maintain. There are various options to consider when looking for forklifts to find the right fit for your business. Let us dive straight into some of them.
Renting Your Forklift
Renting is almost similar to leasing only that in renting, the rental period is shorter – a few weeks or months. Renting is recommended for seasonal contractors who have peak contractual periods that require moving of extra freight. Rent forklift products also when you want to experiment on whether you'll need to lease or buy your lifting equipment. Additionally, you may rent a different forklift model to determine whether it can boost productivity.
Renting a forklift can be necessary when transporting large HVAC equipment such as Charge air coolers or Boilers.
However, be advised that many rentals can be more expensive compared to buying or leasing options. They are costly because of the maintenance cost included. You need to ensure that rental fees imposed by dealers are covering the idle time when the equipment is not used in rental assignments.
Leasing charges may depend on different aspects such as the actual cost of the forklift equipment. For example, a forklift that costs $25,000 will demand a monthly leasing fee of $600 or approximately 1,100/month for a $50,000 forklift equipment. On top of this, you will need to carter for an extra maintenance fee. Furthermore, monthly leasing costs can depend on different circumstances.
These are the main advantages of leasing your forklift over purchasing a new one. However, always remember that it is more expensive to lease your forklifts over time than buy them at once. Additionally, you may face penalties in case of overusing the equipment. Furthermore, leased forklifts are not permanent assets you can use to borrow a loan.
Before you rent forklift products, consider the advantages of purchasing them. Buying your forklift equipment may be suitable if your company prefers to own all its capital equipment. Also, it would be easier to purchase forklift equipment when you have competitive access to a line of credit, have a stable business, or have ready cash in hand.
Every company will approach the lease-buy options from a different perspective. However, rentals offer quick short-term solutions to contractors with seasonal peaks. On the other side, large corporations would instead lease forklifts than purchase them. Furthermore, with the rapid rates of change in supply chain businesses currently, leasing offers superior flexibility.