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Once you have determined the type of forklift you want to get, you need to choose how
you will acquire it –- rent or purchase.
Of course there are advantages and disadvantages to both. However, the decision rests on how you plan to use the lifts and how necessary it is for your company to own lifts.
Here are some advantages to renting forklifts.
· You don’t own the vehicles. If you rent the lifts, the cost is tax deductible.
· You can try them out without obligation. Renting the equipment means that you can determine if there is a true need. If not, you can simply return them.
· Use as you need them. If your business only needs forklifts occasionally, then you can rent them only when you need them.
· Less commitment. Renting lifts means that you have them for the short term. You don’t have to worry about re-selling the asset because you don’t own them. Once the term of the lease is complete, you simply return them to the dealer.
· You’re not responsible for breakdowns or malfunctions. The dealer from whom you rent the equipment is responsible for general maintenance, not you. You don’t have to shell out money to have one fixed after a breakdown or a malfunction. If a forklift breaks down, the dealer simply replaces it.
· Cost is covered by increased revenue due to better productivity. The extra revenue earned by the increase of productivity due to the use of the forklifts helps pay the cost of the rent.
· Easy exchangeability from one type of lift to another. If your business operation changes, then the forklifts you are using may become inappropriate. Since you are renting the equipment, you can easily exchange one type of forklift for another type that would be more appropriate to your new needs.
· Can help supplement your fleet of owned forklifts. For example, you can rent a forklift to substitute for a lift that is out of service. You can rent forklifts to help with a special project rather then buy forklifts you won’t need when the project is finished.
Of course there are disadvantages to renting forklifts.
· The overall cost is greater. Renting forklifts can be costly over the long run compared to an outright purchase.
· You may have to pay rent when not using the lifts. Generally, the rental contract is for a specific period of time. As a result, you may not have to use the lifts at times during the duration of the agreement if a cancellation clause is not included.
· No rent to buy agreements. You can’t buy the equipment even if you rent for several years.
· Limited availability of the type of forklift you want. Specific specifications like lift and door height and turning radius may not be available when you need to rent.
· You may have to hire forklift operators. Regardless of whether you rent forklifts to supplement a fleet or because you don’t have a fleet, you may have to hire operators to run them.