Is leasing a forklift the solution for your material handing needs?
In the past, owning equipment outright was the standard for many companies. However, in today’s fast-paced business environment, the material handling equipment you needed five or ten years ago may no longer be suitable for your current operations.
It’s no surprise, then, that 80% of companies now lease some or all of their equipment. Leasing not only ensures your business stays equipped with the latest technology and safety features, but it also offers the flexibility to upgrade or downgrade at the end of the lease, depending on your evolving needs.
In this article, we’ll explore why more material handling businesses are choosing the cost-effective flexibility of forklift leasing over long-term ownership. We’ll also cover forklift lease rates, common FAQs, and more.
Learn More: Everything To Know About Forklift Leases: FAQ
Benefits of Leasing a Forklift
Upgrade to the Latest Model Regularly
If your operators prefer the latest features and technologies, leasing lets you upgrade to a new forklift model at the end of each lease term. This way, your team can always work with up-to-date equipment, enhancing productivity and satisfaction.
Flexibility to Change Equipment
Over time, your needs might change. Whether you need a different forklift model, an order picker, or another type of material handling equipment, leasing allows you to easily switch to the right tool for the job once your current lease ends.
Lower Monthly Payments
Leasing typically offers lower monthly payments compared to purchasing equipment through a loan. Running a cost comparison will help you determine the most cost-effective option for your business.
Why Leasing a Forklift Can Be More Cost-Effective Than Buying
Leasing a forklift might seem counterintuitive as a cost-saving option, but here’s why it can actually save you money:
1. Little to No Upfront Costs
Leasing requires minimal upfront investment, allowing you to preserve capital for other areas of your business, such as inventory or growth initiatives, rather than tying it up in depreciating assets.
2. Lower Monthly Payments
Lease payments are typically lower than loan payments, helping you maintain cash flow while still getting the equipment you need.
3. No Hassle of Selling Used Equipment
When it comes time to replace a forklift, selling an outdated model can be difficult and time-consuming. Leasing eliminates this issue, as you can simply return the forklift or opt to purchase it at a reduced rate.
4. Adaptable to Changing Business Needs
As your business grows or shifts, leasing gives you the flexibility to adjust your equipment fleet accordingly. You’re not stuck with equipment that no longer fits your operational requirements.
Additionally, leasing can shield your business from unexpected repair costs. Many companies choose leases that include a maintenance contract, ensuring the equipment receives regular service as recommended by the manufacturer. A forklift lease with a maintenance plan can also enhance the residual value of the equipment and reduce additional fees at the end of the lease.
Before deciding to lease or buy, it’s always a good idea to consult with the experts at Total Warehouse for a free consultation and assessment.
How Do I Choose the Right Material Handling Equipment?
We’re here to help! Our experts conduct on-site evaluations to assess your facility’s specific needs and recommend the best equipment to optimize your operations.
How to Secure the Best Forklift Lease Rate and FAQs
How do I choose the right forklift lease agreement? Here are a few questions to consider when selecting a lease agreement:
1. Do you want the option to buy the forklift at the end of the lease?
2. How many hours per year will you use the equipment?
3. Do you need special terms, such as a renewable contract or seasonal payment schedules?
4. Would including a service contract be beneficial to your operation?
5. How do I get the best forklift lease rate for my business?
Lease rates are typically determined by utilization—how many hours you plan to use the forklift. For example, a lease covering 1,200 hours annually will cost significantly less than one for 3,600 hours.
If your usage is lower, you can also extend the lease term to further reduce monthly payments. For instance, the monthly payment on a 12-month lease will be considerably higher than payments on a 72-month lease, so choosing a longer term can lower your overall costs.
Can I Purchase the Forklift After the Lease?
Yes, some lease agreements give you the option to purchase the forklift at the end of the term. The purchase price will depend on the type of lease agreement you choose, such as a dollar buyout, capital lease, or fair market value lease. If you’re considering this option, make sure to discuss it with your lender before signing the agreement to ensure it aligns with your long-term goals.
Leasing offers an attractive combination of flexibility, cost savings, and convenience for material handling operations. Whether you want to avoid the hassle of equipment ownership or prefer the ability to upgrade as your business grows, leasing could be the perfect solution. Reach out today to learn more or to take advantage of our limited-time offer!
Total Warehouse are proud dealers for Linde, Big Joe, UniCarriers, and Landoll. We’ve helped countless businesses across the United States achieve lower maintenance, reduced costs, increased worker satisfaction, and increased economic sustainability by making the switch. Our team of highly knowledgeable experts can help you make the right decision for your business. Give us a call at 833-868-2500 or contact us online.
About the author:
Julie K has been a key figure in the warehouse industry for over five years, combining with content editorial skills & analytical expertise. She has provided valuable guidance to industry leaders, while her editorial abilities have made complex information accessible to a wider audience. Outside of work, Julie stays at the forefront of warehouse technology, continually expanding her understanding of this dynamic industry.
