Difference Between Buying and Renting a Forklift - Ace Equipment

Difference Between Buying and Renting a Forklift

You Should Account for Many Factors When Looking for a Forklift

For many industries, businesses must have some type of material handling equipment in order for them to stay productive and efficient. Without them, their rate of production would surely slow down. Forklifts and other lifting trucks are helpful pieces of equipment that many businesses utilize within their warehouses. They increase the level of productivity within your warehouse while also keeping your workers safe. However, once you decide that your business could benefit from the help a forklift provides, you may be faced with another difficult decision. Do you buy or rent a forklift?

Depending on the type of work your business does, you may not need a forklift for an extended period of time. However, several industries can benefit from owning their own forklift. When deciding between buying or renting a forklift, there are several questions you should ask yourself.

  • How long does your business require the assistance of a forklift?
  • What financial situation is your business in?
  • How is your business’s established credit?
  • How soon do you need the equipment?

There is no right or wrong answer when it comes to making this decision. It all comes down to the needs and circumstances of your business. Ace Equipment is here to help make your decision of buying or renting a forklift much easier.

Buying a Forklift 

Deciding to buy a forklift is a big commitment. It takes plenty of planning. You have to be sure that purchasing a forklift is what your business needs. The upfront cost of buying a forklift is much higher than renting one, so you need to be sure that you will be getting your money’s worth out of it in the long run.

The fact that you own it is also a huge plus since you won’t have to worry about returning the equipment in virtually the same shape you got it in. Also, having a working forklift on hand is incredibly helpful if your business is prone to needing one without much notice. You won’t need to go through a third party to get one.

Pros:

  • Return on Investment: When you own a forklift, you can do whatever you want with it. That also includes selling it or trading it in for a newer model.
  • Free to Customize: When you own a forklift, you do not have to worry about returning it in the same condition you purchased it in. You can do whatever you want with it, which includes customizing it to fit a certain job.
  • Tax Incentives: Typically, owning a forklift means you are eligible to receive tax deductions, which isn’t the case when you rent.
  • More Flexibility: Owning a forklift means that you are not hindered by usage restrictions or forklift availability. You can use the equipment whenever you need.

Cons: 

  • Higher Upfront Cost: Buying a forklift is typically very expensive. You need to plan ahead to ensure your company can afford this purchase.
  • Maintenance Costs: Unfortunately, owning a forklift also means that you are in charge of making sure it works properly. Depending on the types of issues, these costs can become very high.
  • Being Stuck with an Old Model: Technology is constantly advancing, which means so are forklifts. If you aren’t careful, your forklift can become outdated and may not pass OSHA regulations. If that’s the case, you may be forced to buy a new forklift with very little planning.

Renting a Forklift

Not every business requires the use of a forklift year-round. Sometimes companies only see an uptick in business during the holiday season and need the assistance of material handling equipment. During these times, renting a forklift for a short time makes more sense than spending a lot of money on equipment you won’t get much use out of.

If you are also on the fence about committing to a forklift, renting one allows you to test one out before you go through with a purchase. You can rent a new forklift until you find one that’s right for your business. You also don’t need to worry about maintenance costs, as well.

Pros:

  • Seasonal Flexibility: As we have already mentioned, not every business requires the assistance of a forklift all year. Renting a forklift allows you to add equipment to help with productivity and efficiency while not costing you as much money.
  • Test Out Products: If you do intend on purchasing a forklift in the future but don’t know what model to get, you can rent different models until you find the right one.
  • Cheaper Upfront Costs: When you buy a forklift, you have to put up a large sum of money upfront. When you rent, you only have to pay a weekly or monthly fee for their services, helping your company budget better.
  • Reduced Maintenance Costs: Unlike owning a forklift, you don’t have to pay for forklift maintenance. Typically, most rental contracts include planned maintenance, which means a technician with come repair the equipment

Cons: 

  • Fewer Options: Most forklift suppliers only offer the most common and traditional types of forklifts for rent. This makes it difficult for businesses that require a forklift for a specialized need.
  • High Monthly Cost: While you don’t have to pay as much upfront, your monthly rental fees do begin to add up. If your project goes too long, you may end up paying far more than you would if you purchased one.
  • Location: This is a big one. If there isn’t a forklift rental provider near you, you may have to pay massive transportation fees for delivery and pickup of the equipment. This would greatly affect your bottom line.
  • Usage Restrictions: While you may only need a forklift for a short period, some rental providers have a limit for how many hours their equipment can be used. Violating this limit may lead to fines.

Deciding whether to buy or rent a forklift depends on many factors. There is no right choice for every business. Your company may only need a forklift for a few months, while another may require one permanently. However, all businesses must make sure the employees operating the equipment have the proper certification. If you are interested in buying or renting a forklift, contact Ace Equipment and let us help you decide what’s best for you.