If you’ve been tasked with the purchasing of material handling equipment for your workplace, you may have noticed that there’s more than one way to acquire a forklift. Today, businesses have choices including leasing, purchasing, or renting a forklift, but which is the better option?
Pros and Cons of Renting a Forklift
More often than not, renting a forklift is used as a short-term solution. Forklift rentals are available on a day-to-day basis, or sometimes for a few months at a time. Renting a forklift gives businesses who may not need a forklift for a long time a bit more flexibility. Forklift rentals also prevent the need for maintenance. Typically, the rental company takes care of maintenance expenses.
However, renting a forklift comes at a cost. Because of the convenience of rentals, the price will be higher. The cost to rent a forklift over time would be more expensive than purchasing or financing a forklift. Renting also comes with the disadvantage of hefty deposits, contracts, and renewal dates and fees. These are all factors to keep up with and remember – while still running your business.
Purchasing a Forklift
Another option businesses have is to purchase a new or used forklift. Buying a forklift instead of renting has several benefits, including:
- Easy budgeting. Once purchased or financed, a forklift is easy to factor into an annual budget.
- Resale value. Forklifts hold their value well, and can always be sold when no longer needed or when it’s time for an upgrade.
- Tax deductions. Tax benefits, like the Section 179 deduction, allow companies to write off used equipment purchases with an immediate 100 percent deduction – plus bonus depreciation!
Buying Used Forklifts
As mentioned before, businesses can purchase forklifts new or used. So how do you decide? Ultimately, it’s better for a company to buy a used forklift. Right away companies can save major money on a used forklift because of the reduced price and tax deductions. Most often, a used forklift is half the price of a new forklift.
When purchasing a used forklift from a reputable dealer, businesses don’t have to worry about their investment. A well inspected and maintained used forklift can do the job of a new forklift just as well.
For more information on buying versus renting a forklift, contact The Forklift Pro. Our material handling equipment experts are ready and waiting to help you find the right forklift to meet your business needs.