Forklift Purchasing Options: Buy, Lease, or Rent

Purchasing material handling equipment is a big commitment - with large financial commitments, extensive safety requirements, and a wide range of options available, the decision can be overwhelming. But it doesn’t have to be. Read on to learn more about the benefits of forklift rental and leasing options and the different options available to help finance your equipment purchase.

Purchasing Forklifts

A capital investment such as a traditional forklift purchase makes sense for some companies. Owning a depreciable asset can present some positive tax implications, and owning equipment outright can help companies avoid more restrictive aspects of leasing or rental contracts.

Benefits of Financing a Forklift Purchase

For companies purchasing forklifts, they enjoy several advantages:

• Owning the equipment outright means they can sell the forklift if they choose.
• Certain tax advantages, such as Section 179, can benefit their finances.
• While they do pay more upfront, purchased equipment is typically the most affordable over the life of the loan.
• Complete control over the purchase means your order can be customized entirely to meet your needs. 

Overall, purchasing a forklift gives you the most control over your purchase structure, maintenance, configuration, and finances. It does come with a higher up-front purchase price, which should be seriously considered before committing to this purchasing strategy.

Renting Forklifts

Renting forklifts can help fill gaps in your company’s fleet for specific needs. Whether this is in response to a need for more specialized units, such as a jig-lift, or to meet increased seasonal demand, rentals can be a flexible solution.

Benefits of Forklift Rentals

Companies in need of a forklift rental enjoy the following benefits:

• Minimize their equipment costs to stay agile for seasonal needs
• Completely avoid maintenance requirements for rented equipment
• Meet unexpected needs that arise through business operations

For most companies, renting forklifts makes sense for short-term needs. Covering fleet utilization in cases of downed equipment or meeting more specialized requirements makes sense for rentals. However, longer-term requirements may not be a fit for renting. 

Leasing Forklifts

Leasing forklifts and other heavy equipment is growing in popularity. A wide range of lease options and structures exist from many different financing providers, creating flexible solutions for companies of all sizes. Certain lease structures even include an option for companies to purchase the equipment at the end of the lease.

Benefits of Forklift Leasing

Leasing forklifts provides companies with various advantages:

• Flexible financing solutions to meet their unique monetary requirements
• Regularly refreshed equipment with the latest technology
• Bundled maintenance options to ensure uptime
• Simplified accounting practices and possible tax advantages

In all, a forklift lease bridges the gap between a full forklift purchase or a temporary rental. Their flexibility and variety of structures available have led to their increased popularity. Companies should explore the benefits of leasing with their financial advisor and operations managers to decide if it would be worth pursuing a flexible leasing option. 

If you're considering electric equipment, check out Washington's Clean Fuel Standard & Oregon Clean Fuels  electric forklift incentive credit program. Go here to learn how to get paid to charge your electric equipment.

Still considering your forklift acquisition options? Contact us to discuss what options best fit your needs. Our Mid-Columbia Forklift and MidCo Material Handling team has decades of shared experience to help you find the right equipment, financing, and material solutions to meet your needs.

Further Reading:
What You Need to Know about Forklift Leasing Options
How to Plan for Your Seasonal Forklift Rental
When to Buy a New Vs. Used Forklift

While this article focuses on forklift rental and leasing options, we also provide leasing and rental for industrial floor cleaning equipment.