03/08/2022 0 Comments
Long-term Forklift Rental vs Buying
Determining if buying or renting a forklift is the best route for your business can be challenging; Learning more about the advantages and disadvantages with Ring Power Lift Trucks can help you decide.
Long-term Forklift Rental vs. Buying a Forklift
Advantages and Disadvantages
Ensuring your company has the necessary equipment for your operations is a primary expense. Determining if buying or renting a forklift is the best route for your business can be challenging; our professionals have compiled this list of advantages and disadvantages of buying versus renting forklifts to guide you in making an informed decision.
The Advantages of Buying a Forklift
Owning your operational equipment offers several benefits. Several factors determine whether the pros outweigh the cons for your unique situation, such as how often you will run the forklift, whether your company has the overhead to maintain it, and if you are willing to keep the same piece of machinery for an extended period.
- The Freedom of Ownership. Purchasing a forklift ensures you have the necessary equipment to fulfill your operational needs and offers you the freedom that comes with ownership. Ownership allows you to modify your forklift equipment, use it as little or as frequently as you wish, and sell it when it no longer serves you.
- Tax Incentives. Buying a new or used forklift opens the door to tax incentives. You can deduct some of the cost of your investment in the first year, as it was purchased as a business expense. If your forklift were to malfunction or fail, you may also file a depreciation deduction.
The Disadvantages of Buying a Forklift
Buying forklifts may not be in the best interest of your company if the disadvantages negatively impact your company. It is essential to assess your options and understand the commitment of a purchase this significant.
- Costly Expenditure. Investing in a forklift entails a higher initial cost that can be difficult to budget, along with the other expenses of your business. With the hefty price tag of new forklifts, you may have to settle for a used forklift that may not meet your standards.
- You Are Responsible for Maintenance & Repairs. When you buy a forklift, you are responsible for the necessary maintenance and repairs your equipment needs. Depending on the make and model of your forklift, you may face costly overhead or end up with a machine that no longer works, which can interrupt your operations and cause you to lose a significant amount of money to replace it.
- Less Freedom to Upgrade Your Equipment. With the fast-paced advancement of technology, you risk the forklift you purchased becoming technologically obsolete. When this situation arises, you may be required to dish out money to replace your forklift without having the budget to accommodate the expense without a financial burden.
The Advantages of Renting a Forklift
Renting a forklift may be advantageous for your company if you want to enhance your operations and boost your revenue but do not have the capital or enough work to justify purchasing a costly machine.
- Simplified Monthly Payments. The cost of your rental may include a maintenance agreement and repair fees; renting a forklift eliminates the risk of unexpected expenses. Once your forklift rental fee is determined, you will have a clear understanding of your monthly expenses, allowing you to budget more efficiently.
- Trade Out Your Equipment as Needed. Whether your business’s operational demands change or you are interested in a new model, renting a forklift provides you with the privilege of trading out your machine for a different model or the ability to add or remove a forklift rental from your fleet.
- Enhance Workplace Productivity. Renting a forklift gives your business the reliable tools it needs to thrive. You can effectively accomplish your operational requirements without fearing your machine malfunctioning and halting productivity, as your rental company will supply a replacement if necessary.
The Disadvantages of Renting a Forklift
While renting a forklift is often a desirable alternative to purchasing, it may not be the right fit for your company’s situation.
- You Must Sign a Binding Contract. When renting a forklift, you must sign a leasing contract that binds you to your rental agreement for the decided amount of time. Even if your needs change or unexpected expenses arise, you are on the hook to make your agreed-upon monthly payment.
- Costly Monthly Payments. Depending on the details of your specific rental agreement, you may have higher monthly payments than you would have if you paid monthly for a forklift that you owned. Maintenance and depreciation fees and interest may elevate your monthly bill.
Find the Right Forklift Solution for Your Business
If a forklift is an essential component in your business’s operations, it’s time to determine whether buying or renting is the right choice for your company. With so many determining factors, this decision may be overwhelming to navigate on your own. Contact the experts at Ring Power Lift Trucks today for the professional guidance you need to make an informed decision for your company.