Which Option to Consider While Purchasing Forklift: Buy, Lease or Rent?

There are various options to consider when you want to acquire a forklift. As this is no cheap piece of equipment. Making a decision requires you to use a unique lens to decide on what’s best for your scale of operation. Are you torn between renting, leasing or buying? To help you through this challenging process, below, you will find points that will assist you in determining the best cause of action for your business:

1. Renting a forklift

If you in a seasonal peak during your business period or in need of moving extra freight, renting is the choice you can take. When you choose to rent a forklift, you are sure to benefit from experimenting with different classes of forklifts to see which one increases productivity.

However, rentals are somewhat expensive compared to leasing or buying. This is because you will have to cover maintenance costs as well as the time that the forklift will be idle while at the dealership between rental assignments.

During renting, remember that there will be building waste that needs attention. You need to take care of transportation waste, construction waste sorting as well as recycling streams.

2. Leasing a forklift

While you are contemplating leasing, you can set your number of years on which you intend to rent the machine. Having a short lease will allow you to work better if you want to become fluid. Leasing will provide you with less monthly payments when compared to renting or buying.

This option allows you to test-drive new models without making a permanent commitment to buying it. You will be at a position to make adjustments where you see fit in terms of decreasing the fleet size, changing product mix or modifying terms of the lease

3. Buying a forklift

Does your business have a preference for owning all the capital equipment it has? Do you want to access a higher competitive credit line? Is your business stable, or you anticipate to use the material for more than 20 years? Do you have cash at hand to make a purchase immediately? If yes, the best course of action that you should proceed with it buying your forklift machine.

This way, you are sure to make a better return on investment because when you rent over a long period, rental fee tends to become higher as compared to monthly financial costs.

Buying a forklift will allow you to make your modifications than with a rental or leased equipment. You get customized options which suit your specific needs.

You can enjoy a tax deduction as purchased forklift are entitled to a reduced tax.

Conclusion

When deciding on what purchasing technique to use, be sure to analyze your business needs before making any rash decisions. This will go hand in hand with the ultimate choice you make in purchasing option that will work for your company.

Salman Zafar

Salman Zafar is the CEO of BioEnergy Consult, and an international consultant, advisor and trainer with expertise in waste management, biomass energy, waste-to-energy, environment protection and resource conservation. His geographical areas of focus include Asia, Africa and the Middle East. Salman has successfully accomplished a wide range of projects in the areas of biogas technology, biomass energy, waste-to-energy, recycling and waste management. Salman has participated in numerous national and international conferences all over the world. He is a prolific environmental journalist, and has authored more than 300 articles in reputed journals, magazines and websites. In addition, he is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability through his blogs and portals. Salman can be reached at salman@bioenergyconsult.com or salman@cleantechloops.com.

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