Buying Vs. Leasing a Forklift – Which One Is Better?
Buying a forklift is not a small investment and it might break your bank if you plan to buy a forklift. Leasing it instead could be a better option because it might benefit you in the long run. If you want to manage your budget in a more effective way leasing a forklift could be a better option. You would just need to pay around $600 to $ 650 and the cost to lease a forklift for about 5 years can be cheap. Leasing is way cheaper than buying a forklift but leasing too can be a considerable investment so you should keep a few things in mind.
How to lease a forklift?
There are various kinds of forklift lease options. You need to consider the options carefully in order to make things work for you. Let’s take a look at the options.
Fair Market Value Forklift Lease
A fair market lease allows you to pay your installments monthly. It is also called the operating lease and if you plan to keep the forklift at the end of installments you would be required to pay the fair market value for the forklift.
Full-Service Forklift Lease
This option is similar to a long term rent out and the renter is responsible for all the repairs and reliabilities of the forklift. The payment procedure in this kind of lease is also on a monthly basis. The monthly payments are a lot higher in this type of lease option as compared to other options.
Full service and full payout forklift lease
The full service forklift lease is a type of lease option where you can rent for a long term and have to pay according to monthly basis but the cost of repairs are handled by the provider themselves. The payment is a little higher when you compare it with fair market lease option. The full payout forklift lease is suitable for those business owners who plan to purchase the equipment as soon as the period of lease ends up. The monthly payments which you make depend on the period of lease but when you increase the duration of your lease the payments will be reduced. It’s a wise move to increase the period of lease to make it an economical monthly payment venture.
There are few companies who don’t demand any payment from you while there are some who want you to deposit something as a guarantee. The businesses with poor credit ratings usually have to go through this issue. The guarantee deposit is mostly non-refundable and this is an additional cost other than the monthly payments. The forklift requires additional maintenance and repairing costs so the best idea is to make an insurance of your machine beforehand but then again it will increase your additional costs. Now it’s up to you whether you want to own the forklift or are interested in renting it out on a monthly payment basis. The cost of leasing depends on all the things we have discussed.