Purchasing vs Leasing: Which one is More Efficient?
When looking at acquiring a forklift, one of the first decisions you need to make is will you be purchasing the machine outright or renting? The answer will be different for everyone depending on your current situation. Here are some things to keep in mind:
- Do you require a single forklift in your warehouse, or a fleet of 25 units?
- How often will you be using the forklift?
- What application do you require it for?
- How critical are your forklifts to the operation of your business? For example, if your forklift breaks down, will your business still be able to operate?
Now we’ll take a look at the differences between purchasing and leasing:
- Suited to minimal use, low hours work
- Will you be buying a new or used forklift? New forklifts obviously cost a lot more upfront compared to a used forklift, but you are getting a brand new unit and don’t have to worry about service history and reliability.
- Buying a used forklift could save you some money, provided it is in good working order
- You own the machine from the beginning and can use it how you see fit
- If the forklift is reliable, your long-term ongoing costs could be less compared to renting
Forklift rental is often the most practical and economical solution, and here are some reasons why:
- Renting enables you to acquire the use of equipment without capital outlay, which means no expensive upfront or loan costs with high interest
- You are able to budget for the future with fixed costs every month without any unexpected maintenance costs arising
- Fleet Management Rental Programmes give you the right tools to maximise forklift efficiency through establishing K.P.I’s (Key Performance Indicators) and fleet utilisation reports. This will dramatically reduce your administration costs and keeps staff free to concentrate on your core business.
- Renting allows you to always have the most up-to-date equipment and technology, as once your equipment ages or your renting terms end your old equipment is replaced with new.
- At unpredictable peak periods or when essential equipment breaks down, rental forklifts can provide immediate relief.
As you can see, there are a lot of things to think about in regards to purchasing or renting a forklift, but hopefully the above points help when it comes time for you to make that decision.