Why Leasing A Forklift Is Your Best Option As A Large Company
When buying or leasing a forklift, both options have distinct pros and cons that will help you determine which decision is best for you and your company. Recent studies show that larger companies benefit from leasing forklifts when usage is more than 1500 hours per year. This is because leasing offers easy budgeting and a steady increase of new equipment, appealing to companies with large-scale requirements.
Out of the new forklifts that Forklift Systems sells, more than 75 percent are leased. The Small Business Administration estimates that more than 80 percent of U.S. businesses lease some equipment
Leasing A Forklift:
Leasing has several benefits that organizations look at when making a decision. For example, the cost to lease a forklift depends on factors like the machine’s price, the customer’s credit rating, and the length of the lease. For example, a customer might pay $600 to $650 per month to lease a $25,000 forklift for five years.Some of the overall benefits of leasing forklifts include lower upfront costs, increased productivity, and no long-term commitment. Maintenance cost can also be a part of the monthly lease price, making this choice more appealing and cost-effective.
That said, there are also a few cons to leasing as compared to buying. For one, the long-term cost is higher. There is also always a penalty for overdue. The business does not own the machine, and there is always the possibility of poor maintenance service provided by the leasing company.
Purchasing A Forklift:
When it comes to purchasing instead of leasing a forklift, buying a standard 5,000 lb capacity electric forklift will cost $18,000 to $25,000. A 10,000 lb capacity electric forklift will cost anywhere between $28,000 and $50,000. Plus, the cost of the battery and charger only adds to that figure. An internal combustion forklift of the same size costs anywhere from $15,000 to $28,000. Bigger ones go for as much as $100,000. And don’t forget the maintenance costs that can be incredibly high at tim
So, in many situations, the pros of buying a forklift might not be as much as leasing. There are cons as well, like no option to upgrade every few years without undergoing huge costs in obtaining the latest technologies.
Keeping in view the total cost of ownership, leasing is more expensive than buying. But since it has lower upfront costs, it is a great choice in the short term. And this is a part of the reason why even large companies choose to lease forklifts now.-Jaya Krishnan of Beroe
When deciding between leasing or purchasing a forklift, look at the needs and requirements of company to determine the right choice for you. Leasing forklifts are the popular option for larger companies, but it might not be a good choice for others. So, determining one’s distinct need is critical