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Industrial warehouses and workplaces that require a forklift have two options: buying or renting. While each has its benefits, we highly recommend purchasing a forklift outright. We explain why you should buy a forklift instead of renting below.
The Benefits of Buying a Forklift Outright
Here are the primary benefits of purchasing a forklift.
Customization Options
When purchasing a forklift outright, owners can customize it in any way they see fit. For workplaces that require forklifts with custom attachments like chain hoists, jib cranes, or fork extensions, buying is typically the only option available to get the type of truck lift they need.
When renting a forklift, companies are at the mercy of what the rental provider has in stock that other companies haven’t already rented. When purchasing a truck lift, workplaces earn the freedom to customize the forklift to their exact standards.
Tax Deductions
Another great benefit of buying a forklift that’s unavailable to renters is the tax deductions. Thanks to the Section 179 deduction of the IRS code, companies can deduct the full purchase price of qualifying equipment from their gross income, including forklifts.
So, while you may pay more upfront costs, come tax season, you’ll get a nice deduction to help offset that cost in the long run. When renting a forklift, you don’t qualify for any tax reductions, so you’ll likely pay more in the long run than simply buying.
Company Asset
Buying a forklift also makes it an asset for your company instead of just a fee that you have to pay every month. The forklift counts as equipment and an asset to your company, increasing its value if you ever consider selling the company down the road.
And as with any purchased vehicle, whether it’s a forklift or a typical car, you can sell it later after years of use as the sole owner. With the option of selling it, you can recoup some of the purchase cost and put that money toward buying a new forklift.
Better Warranty
When you buy a new one, you also get better warranty coverage for the forklift than simply renting it. New forklifts often come with significant warranties that cover practically everything in the event that any parts or components fail in the first few months or years of operation.
Therefore, when you buy with a good warranty, you can rest assured that it’ll cover the cost of replacement parts. When you rent, you’re at the mercy of the rental provider to cover repairs and maintenance and are accountable to their schedule and how fast they can fix it and send it back to you.
Stronger Long-Term Value
Buying is always the better long-term investment. Renting may have the benefit of being cheaper in the short term. However, if you want the best long-term value, you should buy a forklift instead of renting.
While the monthly fees may seem affordable, they add up to you paying much more in the long run than if you paid it all upfront. Rental providers must account for overhead costs like maintaining and housing the forklifts, which means charging higher rental fees to renters.
Used Options
While buying new may seem too expensive for industrial companies, purchasing a used truck lift is still an option. Used forklifts may not have the same shine as new ones, but they’re more affordable and help offset the costs of purchasing a forklift outright.
While some may hesitate to purchase a used forklift, used options are often still in very good condition and offer many years of service. And, as with new forklifts, companies can sell them later to regain some value and earn cash to go toward the next forklift.
Easy Budgeting
Buying a forklift with a lump-sum payment is much easier for a company’s accounting department. When renting a truck lift, the company always has to account for the monthly fees in their expenses, which can limit their flexibility in purchasing other equipment or supplies because they’re still paying for the forklift.
It’s much simpler for companies and their accounting departments to manage one payment upfront toward their expenses instead of calculating recurring fees and what they mean for their budget every month.
The Drawbacks of Renting a Forklift
Next, let’s discuss the disadvantages of renting a forklift.
Repeating Monthly Fees
The major downside to renting a forklift instead of buying one is that you must pay high monthly fees. While these may seem more affordable for a lump-sum purchase, they add up to a much greater sum over the months and years of use.
The rental provider has to charge more than the forklift is worth because they have overhead costs and are also responsible for maintenance and repairs. And because you’re only renting instead of buying, you can’t sell the truck lift later and regain some of that value.
Return Conditions
Anyone who’s ever rented a car understands the rental provider expects them to return the car in a certain condition. The same goes for renting forklifts. When it’s time to return the truck lift, the rental provider will inspect it to ensure it meets their conditions.
If the rental provider thinks the forklift doesn’t meet the agreed-upon return conditions, they could charge you extra for damages. When buying, there are no such worries, and you’re solely responsible for the condition of the truck lift.
Location of Rental Providers
The location of your company could also be a limiting factor in what kind of forklift truck you can get from a rental provider. If you’re in a highly populated area, you’ll likely have a strong contingent of forklift rental providers. But if there’s only one forklift provider in the area, you’ll be significantly limited to what they have in stock.
Or if you have to rent from a provider quite far from the company, you’ll end up waiting longer for delivery, maintenance, and repairs. When you buy, you don’t have to worry about things like a one-time delivery, and you’re responsible for repairs.
Where To Buy Forklift Parts for Your Truck
If you decide to purchase instead of rent a forklift truck, you’ll be responsible for maintaining and repairing the truck yourself. Intella Parts Company can help you keep your forklift running at peak efficiency with our inventory, which includes aftermarket Hyster forklift parts and more. Browse our selection online or contact our expert staff if you need help finding the right parts for your forklift today.
