Buy or rent a forklift?

A guide to help you make the right decision for your business

What is the best option for me?

Many companies sometimes face the issue of buying or renting a forklift or warehouse equipment. Obviously, there are advantages and disadvantages to both options, which is why it can be difficult to choose. It can be inviting to buy the equipment while there is capital, and the feeling of not having to pay interest is always attractive. But have you ever wondered if that money cannot be invested elsewhere that gives more returns? If so, what are the benefits of renting equipment?

Below, we present an overview of when it is considered best for a company to rent or buy one or more pieces of equipment. We also explain the economic and operational differences in the short- and long-term rental of a fleet of equipment and how it reduces downtime and increases employee productivity.

Advantages with the purchase

Buy to own property

The purchase of a forklift may seem the most correct if economic capital exists and if new (or used) equipment is needed for operations. In general, it is clear that there are better things to invest, because a forklift, like a passenger car, directly devalues. But you must do so if company policy indicates that you must own all of your forklift trucks and warehouse equipment. Purchased equipment will, of course, be an asset on the company's balance sheet. You can also do whatever you want with it, without worrying about what the supplier might say when the lease expires.

However, be aware that all modifications made to the equipment must take place within the CE marking structure. Always allow an expert to make the necessary changes. In addition, make sure you have a maintenance service contract, preferably with regular service throughout the year, to reduce the risk of breakdowns. Ask yourself how long you can be without the equipment if something happens.

Let's look at the pros and cons of buying

+ You own the truck and can do whatever you want within the framework of the CE marking

+ It is an asset on the balance sheet

- You have to make sure that the truck lives up to the requirements that exist

- You are responsible for maintenance and repair

- An investment that binds capital

- This makes your truck fleet less adaptable

- The truck is rapidly decreasing in value

- You must take into account unexpected costs such as the hire of spare trucks as well

repair in case of major damage.

- Must sell or scrap the truck when it is no longer needed

Long-term rental

Long-term rental with maintenance service included

Most forklift companies offer short term and long term rental. Many customers opt for the long-term rental solution, rather than purchasing the equipment. This way, it avoids the high initial cost and enjoys frequent assistance, spare parts, and updated technology.

If you rent the equipment, you can invest the capital you would spend on buying the machine in other things, which may even increase the value of your business capital. If you also get low-interest rates, there is little reason to attach capital to equipment that quickly depreciates. However, make sure that the supplier is an authorized company and that the equipment is checked.

When should you rent long term?

• In specific projects
• In the case of planned changes in production
• When you want flexibility in the permanent forklift fleet
• When you want a fixed monthly cost

When should I opt for short term rental?

Short-term rental in high seasons

The long-term rental has many advantages, but the short-term rental option can really be the ideal solution in some situations, for example, during peak seasons, because it allows you to reduce costs during low season when you don't need to to keep so much equipment active. You will, therefore, need machines ready to use. It may be during holidays when trade increases and storage needs to be faster. Short-term rental is also a good solution when equipment breaks down and you quickly need a new one or when you make changes or reorganizations and the equipment will only be used for a short period. Beware of short term rental for a long period of time, as the price usually ends up getting quite high.

When is a short term rental suitable?

• When you need equipment for a short and limited period of time.
• When a seasonal downturn occurs in your business
• When there are spikes in your business
• When there is uncertainty whether the need will remain
• When you need extra features
• In urgent needs

Whatsapp me or call me via +86 151 5813 2395

Email: [email protected]

Company web: www.unforklift.com