A forklift is one of the common equipment used for handling/lifting goods and materials. It is an efficient machine used in department stores, loading docks, warehouses, and shipyards. It comes in different sizes, lift capacities, and power options. Also, the price depends on what you need the machine for.
A forklift is expensive and your decision to buy or rent one depends on the needs of your business or the project. For instance, if you will need a forklift for most of your activities, buying may be a good option. On the other hand, if you occasionally need one, renting it might be better. This is because it will give you the opportunity of working with newer models. The points discussed in this article will help you determine the method that is suitable for your business.
Benefits of Buying a Forklift
Here are the benefits of buying a forklift:
When you buy the equipment, it is like buying a car for yourself. You can modify it to suit your needs. And this is something you cannot do with a rented vehicle or equipment. So, when you order the forklift, you can request certain customizations from the factory.
You may want to check this website for ideas on forklift customization.
2. Returns on Investment
As an owner, you can resell the forklift. This is one valuable means of getting more returns on the investment. However, this depends on its residual value and the way you maintained it. Additionally, when you buy a forklift, it will save you more money because the cost of renting is usually on the high side.
When you rent, you will have to return the equipment within a time frame. It must also be in good condition as at the time it is returned, based on the contract. But if you buy your own, you can keep it for as long as you wish. And any damage to it will not pose much of a problem.
4. Tax Deduction
Unlike rented equipment, if you buy, it may be eligible for a tax deduction.
When Is It Better to Buy a Forklift?
It may better for you to buy the equipment if your business falls in any of these categories:
- Prefers owning its own capital equipment
- Can access good credit
- The business is stable and will need the equipment for twenty years
- Cash is available to buy or the business needs to list the asset as a capital equipment
- The working terrain doesn’t cause repair or high maintenance needs
- The equipment can be used for a minimum of seven years with minimal maintenance
Benefits of Renting a Forklift
Here are the benefits of renting the equipment:
1. Absence of Long-Term Commitment
When you are renting, it is usually for a short period of time. And you can return and swap it for a different model. You can also decide to change the dealer and try someone else who will provide better services. If your business is in San Diego, you can check out the terms for rentals from Pacific Coast Lift for an idea of what to expect from a reputable rental service.
If your business needs forklifts seasonally, renting will be an economic means of having them during the periods that you need them.
3. Reduced Cost of Maintenance
When you are renting, the contract will make provision for planned maintenance. This means that at any point when the equipment is in use and break down as a result of the usual wear and tear, the rental company will send a technician to repair it. This will be done at no additional cost.
4. Financing is Not Required
Since you are renting, you do not have to worry about capital financing. This will eliminate an additional step in the process of approval.
5. Lead Times Are Short
The rental company has a lot of forklifts in stock. So, you do not need to wait for a long time for the equipment to be manufactured, customized, or shipped from the factory to your business location.
In this article, we have discussed the benefits of buying and renting forklifts. We hope that the information would be useful in your decision-making process.