Hiring or leasing equipment, such as forklifts or pallet trucks, rather than buying it gains more and more popularity. Business owners often ask themselves whether they should purchase a forklift or depend on a company that specialises in short- or long-term leases. The simplest answer is: it depends. When it comes to material handling equipment such as forklifts, decrease in value and so leasing is a very interesting and beneficial option worth looking into.
Should you buy?
Let’s first look at when it’s really worth investing in your own fleet. Realistically, it is a good solution in a limited number of cases. Would it be a forklift used for small operations that can serve you for 7-10 years and require little maintenance? Another aspect is how much free capital you can use for a purchase. If you have excess capital and meet the above criteria, buying might be worth considering.
If your forklift operations are larger than 1500 hours per year, this is where leasing offers a better alternative to buying. If you’ve analysed your needs, business growth and other aspects of operations and you are certain that intensity of work will not decrease, consider leasing from 48 to 60 months.
Consider leasing equipment
Advantages of leasing pallet trucks and other equipment are several fold. Firstly, it means that you don’t need to spend a larger sum of money all at once. Instead, the demand on cashflow is minimised. What’s also included in your lease agreement is everything you need to start using your equipment and avoid ‘hidden costs’. What’s more, level monthly costs of leasing make book-keeping easy and minimal.
Leasing means getting a piece of equipment that you require now for your current applications. Flexible terms will help you adjust it in case your needs change and allow for an upgrade. Also in cases when you need repair or maintenance, it’s much easier and cost-effective. It doesn’t require collecting money to afford the best and most suitable models, but gives an opportunity to use the same models for lower monthly payments and on agreed conditions that benefit your business. There are also companies specialising in rental of hand pallet trucks. This is particularly worth looking into if you temporarily require heavy duty pallet trucks.