Forklift Purchasing Options: Buy, Rent, or Rent to Own?
Deciding what Forklift you want to go with can be a difficult and drawn out process. Determining what purchasing method to use to procure that equipment, however, doesn’t have to be. Buying and renting forklifts both have their own unique advantages.
Advantages of Buying a Forklift?
Return on Investment – This is the only option that will allow you to resale the forklift, which can be a valuable way to increase your return on investment depending on the residual value of the forklift and how well it is maintained. Purchasing forklifts is generally provided a better return on investment compared to long-term rentals since rental fees are higher than monthly financing costs.
Tax Deduction – Forklifts that are purchased can be eligible for tax deductions, unlike rented or leased vehicles.
Liability – Rental and lease vehicles must be returned after a set period of time and are expected to be in a reasonable condition based on the verbiage in your contract. Purchased vehicles are yours to keep, so cosmetic damage isn’t as much of a concern.
Advantages of Renting a Forklift?
Seasonality – Renting additional forklifts only as needed for seasonal purposes can be a great economic way to have additional equipment only during the times that you need it.
No Long Term Commitment – Since rentals are usually paid for on a month-to-month basis, you have the ability to return the forklift or swap it out for a different one from your dealer’s stock.
Short Lead Times – Most forklift dealerships have ample stock of a variety of material handling equipment, so you don’t have to wait for a new forklift to be built and shipped to you from the factory.
No Financing Required – Renting forklifts requires no capital financing, eliminating an extra step in the approval process.
Advantages of Rent to own a Forklift?
Greater flexibility. Easier than funding with a bank.
Keeps banks and major lending partners funding available for core business requirements.
More competitive rates. Generally we have more competitive rates on used equipment than traditional funding.
Less paperwork. Single credit approval allows companies to hire, rent-to-buy and service forklifts and equipment through Refurbished Lifts, without the need for multiple credit applications.
Flexible ‘end of agreement’ options and Buy Back options.
Give us a call: 888-509-9986 to go over the best Forklift acquisition option for your business!