Archive for August, 2022
FAQs About Renting vs. Buying a Forklift
Deciding whether to rent or buy material handling equipment is a crucial decision. There is a lot to consider, and the process might leave you with more questions than answers.
We have prepared a quick list of the benefits of renting and buying. We have also answered ten frequently asked questions about renting vs. buying so you can make the best decision for your needs.
BENEFITS OF RENTING VS. BUYING A FORKLIFT
Benefits of Renting Forklifts and Material Handling Equipment
- No maintenance budget or forklift techs required
- Get equipment with the latest ergonomics and technology
- Flexibility to switch equipment whenever you need
- Great for seasonal highs and lows
Benefits of Buying Forklifts and Material Handling Equipment
- Pay for only the features you want and need
- Customize your equipment with special forks and other options
- Buying capital equipment can have tax and other financial benefits
FAQS ABOUT RENTING VS. BUYING A FORKLIFT
Here are answers to ten frequently asked questions about renting vs. buying a forklift.
- Who takes care of maintenance on rental equipment? The rental company will take care of servicing your forklift if any problems arise. They should also provide replacement equipment at no charge while your initial rental is out of service.
- What is the difference between a short- and long-term rental? Short-term rentals range from weeks to up to six months. Long-term rentals range from six months and longer.
- We have rough terrain. Should we rent or buy? If you work in a harsh environment, you should consider buying a forklift. Excessive wear and tear on rental material handling equipment could cost you.
- We have limited capital. Should we rent or buy? Renting a forklift has lower upfront costs than buying a forklift.
- What is in a material handling equipment rental agreement? Most rental agreements include delivery, pick-up, service, maintenance, etc. Make sure there are no hidden costs when you compare quotes.
- Can we rent forklift attachments and accessories? Yes. Many companies rent propane tanks, fork positioners, paper roll clamps, and other add-on equipment.
- Can we rent-to-own material handling equipment? Yes. Many rental equipment companies have rent-to-own contract options.
- What is the benefit of renting from a material handling dealer? Material handling dealers specialize in forklifts and warehouse equipment; you will have a broader range of equipment to choose from and access to experts in the field.
- We need extra forklifts during our busy season. Should we rent or buy? Material handling equipment is expensive. It is best to rent if you only need additional equipment for a few weeks or months a year.
- We have multiple locations but do not have a way to transport material handling equipment between them. Should we rent or buy? If you need to move equipment between sites and do not want to purchase another piece of equipment to move it, it might be better to rent. The rental company can take care of delivery and pick up at each location, along with service, cleaning, and a host of other things.
Have more questions, or are you ready to rent or buy? Contact us to speak to one of our material handling experts today!
FAQs About Leasing a Forklift
Leasing a forklift is an excellent alternative to buying new or used material handling equipment. There are many advantages to leasing, including buying at the end of the lease or trading in your leased equipment for the newest model. Read on to learn the answers to frequently asked questions about leasing a forklift.
What are some of the benefits of leasing a forklift?
- Get a new model every few years. Do your operators want the latest bells and whistles when a new forklift model comes out? Leasing allows you to upgrade to the newest model when you turn in an old model at the end of the lease. Your operators will thank you.
- Get new equipment every few years. Sometimes you need an entirely different forklift, order picker, reach truck, or other material handling equipment. Just turn in your forklift at the end of your lease and pick up the new equipment you need.
- Lower monthly payments. Lease payments are often lower than loan payments. Run the numbers so you can make the best decision for your company.
Can someone help me pick the right material handling equipment?
- Yes, our experts perform a site visit to assess your needs and help you choose the right equipment for your facility.
What happens after delivery?
- As your material handling solutions partner, we are always available to answer any questions about your equipment or other material handling needs.
Can I add a maintenance program to my leased forklift? 
- Yes, we highly recommend a planned maintenance program (PM). Ask your material handling expert for options.
How long is a typical forklift lease?
- Typically, a forklift lease includes 40 hours of weekly utilization (about 2,000 hours per year).
What happens if we go over the utilization hours?
- Overtime charges may apply, which can range from 45 cents per hour to more than $5.00 per hour.
Can I request more utilization hours in my lease agreement?
- Yes, if you think you will use your forklift more than 40 hours per week, you can request a higher amount in your lease agreement.
Should I choose a short or long-term lease?
- If your utilization rate is low and you want the lowest payment possible, you should pick a 5–6 year lease. If your forklift usage is high, you should consider a shorter lease.
How much do I pay upfront?
- In general, there is little or no money due at signing.
Can I buy the forklift after the lease ends?
- It depends on your lease agreement. If you want this option, make sure you ask for it before you sign.
Who is your finance partner?
- We offer financing options through Toyota Industries Commercial Finance.
Can I cancel the forklift lease?
- Yes, but it can be expensive. Make sure to choose the right material handling equipment and lease term for your individual needs.
Buying, renting, or leasing an expensive piece of material handling equipment is a big purchase. An experienced material handling professional can make sure you get the most value and return on your investment. Contact us for a free consultation today!