Renting vs. Leasing vs. Buying Forklifts

Forklifts provide the necessary muscle required in an operation with lots of moving, loading and unloading heavy objects. Their outright price however, is high and not many firms can easily go for purchasing as the way to build and obtain a fleet of forklifts for their service. The demand for forklifts across all industries has seen forklift rental Toronto services become more popular as people look to renting the forklifts or leasing them as a cheaper alternative to buying new forklifts. At times making this choice can be a challenge as you try to look for the best way you can utilize forklifts in your business. Here’s a look at all the three options to enable you make a decision:

Buying a forklift

This is the most expensive option in terms of upfront costs. It requires a substantial outlay of capital cash. The benefits are the fact that it grants you immediate ownership and use of the forklift as soon as need arises. You also get to enjoy the maximum life cycle of the forklift and easily identify when you need to make repairs and upgrades. It is suitable for larger firms with large-scale operations since to them, hiring all the forklifts they need can easily add up expenses in the long run. Smaller firms which have a frequent use of forklifts with consistent flow of work can also consider buying forklifts as a long term investment.

You also get to enjoy all the benefits that come with the tax deductions made on depreciation. In case of any injuries and accidents, you are also sure you are not waiting for a third party to cover the repair and insurance provision. The challenge with buying as an option is not only the huge upfront costs but also what to do with the forklift should it become obsolete or need replacement.

Leasing a forklift

This is a long term hiring of forklift for your use. It usually covers more than one year periods. It offers the benefits of ownership of a forklift while downsizing the negative aspects. For example you do not require the upfront fees which frees up your capital for other uses. You also get to use the forklift at a flat monthly rate agreed upon by the lessor. At the end of the leasing period, you can either buy the forklift, return it or lease it or another forklift for another period. Should you desire to break the lease at an earlier than agreed upon time there is usually a termination penalty you have to pay. It allows companies with longer term projects to get forklifts without the upfront costs of purchasing one while the monthly rates are not as high as the rental ones. The major let down is the fact that you cannot easily change or modify the contract. You also do take up some of the operational costs like repairs and maintenance depending on the agreement.

Renting a forklift

Renting a forklift allows you to use it for the shortest duration of time. You can rent a forklift for one day and up to a year. Longer rental periods provide for lower rates. Renting offers more flexibility than the other methods. This is especially true for those who have emergencies or subcontractors needing forklifts for a shorter time and then later in their work. The only shortcoming is that you are at the mercy of the renting company’s inventory.