Whether to Buy or Lease Forklift!

One of the questions came across with the companies very often and it is a matter of concern also, whether they should buy or lease forklifts  equipment. The fundamental rule is if the item will increase in worth then they ought to possess it, if it decreases in worth, then they should not own or buy it. Since forklift diminishes in worth, then there are different scenarios in which company should think of buying or lease it.

A forklift (a lift truck,) is a commercial truck used to lift any type of materials for short distances. Forklifts are appraised for burdens at a predetermined greatest weight. Material handling equipment (forklift) is an absolute necessity for present day businesses to stay competitive and increase worker productivity. 

Before we go on for leasing or buying we need to consider a few points:-

• What is your weight capacity and height requirement for your work? Different forklifts can lift different amounts of weight.  We cannot expect that any truck can reach to any height.
• Where you want to operate the truck i.e. in narrow place, smooth, indoor, outdoor etc.
• How long the truck is required and what is your budget.
• While leasing forklift, companies should check whether they provide hassle free maintenance or not.

Why to lease

• When a company cannot withdraw large amount of money for the purchase of Forklift, it’s better to lease. Leasing gives you use of the forklift without investing the full cost of the equipment together.
• Where different sorts of financing require a heavy down payment, leasing is fully financed. Most lease agreements require no advance payment. May be one or two months’ advance payments are needed.
• Lease payments are lower throughout the term than the cost of principal and interest.
•  A perfectly customized lease program gives you the advantage of having the forklift you need without all the risk and cost.
• No need for in-house mechanics. No maintenance cost required. The company from where you have leased is responsible for all maintenance costs.
• As equipment ages you will not get the benefits of newer technology if you buy
• You can get a latest Forklift as per the requirement if you lease it.
• The costs of ownership of forklift include taxes, maintenance and depreciation, where as there is no such thing while leasing.

 

Why Buy

•  Heavy utilization of the forklift, the company needs to see a cost advantage in the long run.
•  They don’t want to be dependent on third parties.
•   It has relatively consistent costs, once purchased.
•  Sometimes Forklift is not available immediately, the company should go in for buying it.

Leasing of forklifts gives you a lot of flexibility and benefits, but as per your work, you need to take decision to acquire it and see what will work out best for you. The performance, security and guarantee of Forklift provided by a lease is important, Mister Mechanic is one the most trusted names on which you can rely!

Address: 3095 Wolfedale Rd, Mississauga, ON L5C 1V8, Canada

Phone details: 905-275-8072