Is it Better to Rent or Buy a Forklift?

June 14, 2016

Warehouse management can
be an
unpredictable business, requiring a constant juggling act between
supply, demand and inventory. When one of those factors changes dramatically,
managers must adjust quickly or risk the whole operation shutting down. Fleet lifecycle
management is a critical part of maintaining that balance. When your
operation’s demands change, is it better to rent or buy a forklift? When
weighing the true nature of forklift prices, there are benefits to both.

Benefits of renting a forklift:

It can be more cost-effective to rent a forklift if
your business is seasonal. Rentals are also handy for special inventory counts
or unexpected needs, such as a warehouse move.
Maintenance and service is
included in the rental fee, so you don’t incur expensive, unexpected repair
costs if a forklift breaks down.
Likewise, there is no need to
employ in-house mechanics, as the rental dealer takes care of all maintenance
and service.
From a tax accounting standpoint,
it can be simpler to use forklift rentals as an operational expense versus
trying to discern the depreciation of a purchased asset.
It’s easier for businesses with
less credit to rent than buy.
There is a better chance that you
will get newer equipment complete with the latest technology. Rental equipment
from reputable dealers, like MH Equipment, will also be compliant with safety
and emissions standards.

When it’s better to buy a forklift:

If
you have special lift needs or any unique warehouse spaces such as doorways or
tunnels that require custom machinery, the long-term cost of buying may be
wiser.
Should
your business already employ an in-house maintenance technician, you can
perform the maintenance in-house instead of waiting for the dealer.
Likewise,
you may not want to be at the mercy of rental companies’ availability at all,
particularly if there aren’t any dealers close by.
If
your workflow is predictable and steady, the investment in a purchased forklift
may not be a risky move. You can’t completely predict the future, of course,
but historical behavior should be considered.
Perhaps
you have regular, albeit light, forklift needs; most forklifts can last quite a
long time before they need extensive service and repair.
There
is often a desire of operators to be comfortable with the machinery versus
needing to familiarize themselves with a revolving door of different forklift
brands.

As with any business decision, it generally boils down to selecting
the option with the greatest benefit at the lowest overall cost. When making a
cost comparison, multiply the cost of a rental by the time
for which you need it and compare
that to the amortization cost of buying a forklift. Additionally, you will want
to consider how much credit you have and if using your credit to make capital
equipment purchases is the best use of your working capital.

Whether you decide to rent or buy a forklift for sale,
MH Equipment can help you find the right forklift for your warehouse needs. As
an authorized
Hyster and Yale forklift dealer, we provide the most trusted
brands in the industry and offer ongoing support for service, training,
maintenance,
and
service. In fact, half of our entire workforce is made up of experienced
technicians.

With 27
locations
across
10 states, MH Equipment offers convenient access for
rentals and repair. We will drop off and pick up
your fleet rentals, and you can trust that your forklift rental will be
well-maintained and reliable.