Forklifts are large, heavy, and expensive pieces of equipment. With that said, there are obvious advantages to owning this kind of equipment if it’s something you intend to get a lot of use out of.

When deciding between leasing, buying, or renting a forklift, it is important to consider both the upfront costs as well as potential longterm gains. Curious which route your company should take?

Continue reading and we will walk you through everything you need to know about buying and renting forklifts.

Renting a Forklift

When you rent a forklift, you typically get to use the equipment for a couple of weeks or maybe even a few months.

The biggest benefit of renting pretty much anything is that you pay significantly less than if you purchased and you get to use the product for a temporary amount of time.

Renting allows you to experiment. If you are unsure which type of forklift is best for the work you are trying to do, you may want to start by renting. This way, you can try out different classes and sizes and see which lift works best with your company’s process.

If your work is seasonal, perhaps you are busy during the holidays or during the summer months, then it may make more sense to just rent the lift during these periods as opposed to owning.

Compared to purchasing options, rental fees may be relatively expensive. This is because the cost of maintenance will also be included in the fee. That fee will also cover the amount of time that the forklift sits idle in the dealership between assignments.

Buying a Forklift

Ultimately, this decision between buying and renting comes down to how much use you intend to get out of your forklift over the long run. When you buy a forklift, you get to own more of your total capital equipment.

However, you are stuck with the same model for years to come and may miss out on innovations made to new models. Because of the price of buying a forklift, you should only purchase if you intend to use it for at least the next 20 years.

Renting a forklift over several decades will end up costing more than just buying one and using it over and over.

Many companies consider leasing a forklift and then buying it at the end of the term. Unfortunately, this is going to cost a lot more than just buying it from the beginning.

Making the Right Decision

Every business is going to have different priorities. That is why it is so important to review your five year, ten year, and twenty year plans and see which choice makes the most sense for your company.

Also, be sure to evaluate your line of credit and how much cash you have on hand. You want to make sure that your finances can handle buying or renting a forklift.

Interested in learning more? Contact us today!