When you need to get a forklift for your company for the first time, the options before you can be overwhelming. It takes a bit of time and some research to wrap your head around the various forklift leasing options and forklifts for sale in Atlanta and other places before you can find the best fit for your requirements. You have to weigh the pros and cons of leasing and buying your materials handling equipment. There is not clear-cut way to approach the leasing Vs buying options when it comes to forklift trucks despite the abundance of ‘expert opinion’ in support of one or the other.
Basic Approach
The first and perhaps most notable deciding factor when faced with the lease vs buy question is your company’s financial wellbeing and how you intend to use the forklift truck. If your equipment handles significantly lighter loads and those that have huge and highly profitable, it is advisable to buy your own forklift trucks as opposed to leasing. The search will naturally take you to two places, your accountants office and forklift dealer.
Leasing Options
- Some of the available leasing options include: Residual or operating lease also called fair market value which features the lowest rates. It can however prove costly in the long term as you are required to pay the equipment’s fair market value if you intend to keep it at the expiration of your lease.
- A full service lease which works like a long term rental as it allows you to make monthly payments while leaving repairs and reliability to the owner.
- A full buyout, capital or dollar value lease, which calls for high payments
If you are looking to reduce your monthly payments, taking out extended leases can help. You need to take care not to extend the lease beyond a point where it offers dividends for your company. You also need to consider the benefits of ownership, which we will cover in a separate blog.
Thanks for talking about how the decision to rent or buy a forklift comes down to what you’re using it for and how much you need to lift. We need to get one for our project, but because this is probably the only time we will be using it, I think it would be smarter to rent it. I think there are a lot of good options for forklift rentals in our area, so it shouldn’t be too hard to get a good deal!