Forklifts: Rent Or Buy?

Any business dealing with a warehouse of inventory will consider a forklift an essential piece of equipment. It offers an easy method of unloading and organising inventory. Buying a new forklift might seem like the best thing to do but upon closer examination, renting holds several advantages.

Who Benefits Most by Renting?

Although any type of company can save money by leasing a forklift, the ones benefiting the most are those who use forklifts over 1,500 hours a year and abuse them. Abusing them does not mean that the owner beats them with a lead pipe and calls them names. It simply means that the forklift will be put through vigorous use: mining companies and fertiliser plants are two great examples of businesses that would abuse a forklift.

Financial Advantages

Forklifts: Rent Or Buy? Renting a forklift can be much more budget-friendly than buying one. This is great news for start-up businesses that don’t have a large budget. Here are some examples of common financial options.

Only One Monthly Payment

Renting ensures that the monthly payment will always be the same. This makes it easier to control your budget. Leasing plans include the costs of the forklift, interest, and any maintenance that’s incurred. If it breaks down, then you are not responsible for any incurring costs.

Controlled Maintenance Costs

This is briefly mentioned above, but the importance of controlling maintenance costs cannot be over-emphasised. These costs are guaranteed not to increase when parts go up or even when dealers try and overcharge. This is the responsibility of the leasing company.

Supervisory Costs

Since regular maintenance is normally the responsibility of the leasing company, you can save money on supervisory costs as well. No need to have a supervisor planning regular preventatives or filling out repair invoices. This time can be better spent focusing on other areas of the business.

Easier to Upgrade

The goal of every business is to expand and grow. There is a lot of planning involved and obstacles that must be overcome to make this happen. Buying a forklift adds yet another obstacle. If your business expands, then you will probably start seeing an increase in inventory. An increase in inventory means that you need a more powerful forklift. If you bought it, then you will have to sell the current one while buying another. This can be a huge headache. If you are renting the forklift, you don’t have to worry about this. Simply upgrade and the company will swap them out. In one quick and painless step, it’s done.

Always Have an Up-to-Date Forklift

Times change and so do forklifts. Newer models are safer, more energy efficient, and tougher. You could be stuck with an older model forklift and watch as your competition gains an advantage over you. However, renting will allow you to be a step ahead of the game. Most leasing plans have trade-in options. That means your forklift will always be up-to-spec. There is normally a time frame that you must wait out between trade-ins (unless of course, the current forklift breaks down).

Things to Consider When Renting a Forklift

So now you know the advantages of renting over buying. Now it’s time to wrap up this article by going over some of the essential things to consider when renting.

  • Always make sure the load capacity meets the needs of the business.
  • Make sure you get all of the accessories you need.
  • Pick the right style of forklift.
  • Make sure that the leasing company insures the forklift.
  • Make sure that all of the terms are clearly spelled out in the leasing contract.

Erin Warbrook is a Perth, WA based writer writing on behalf of United Forklift and Access Solutions. If you’ve been planning on looking for a new forklift for your warehouse, consider a forklift hire.

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