If you require a forklift, you might need some help figuring out whether to buy or rent one. There is more than one right answer in the debate of whether you should rent or buy equipment since this isn’t a one-size-fits-all situation. Instead, you need to evaluate your needs and assess the benefits of both options to help you make an informed decision.
Key Factors to Consider
Before you start considering the merits of renting or purchasing a forklift, you need to establish your business’s requirements. Thinking about what you expect to get from the equipment can help you narrow down the best option.
Here are a few vital questions to ask yourself when choosing between renting or purchasing a forklift:
- What is your budget?
- How often do you use forklifts?
- How vital are forklifts to your daily procedures?
- What do you want to use the forklift for?
The Benefits of Buying a Forklift
Buying and owning your equipment has many benefits. Here are some of the most noticeable ones:
- You can customize it: When you buy a forklift, you can make changes as needed to improve its performance so it can better meet your needs. If you want to make your equipment unique and optimize its performance, or you like playing around with the mechanics of your equipment, renting isn’t a good option — buying, however, gives you the freedom to make changes as needed.
- You get tax benefits: New and used forklifts are tax deductible since Section 197 of the Internal Revenue Code allows businesses to deduct heavy equipment from their taxes, provided they use the machine for at least 50% of the time. So, even while your forklift may be a large investment, it will have some financial benefits regarding your tax deduction.
- You have alternative funding options: You have options for paying for a forklift. If your budget is tight, you may be able to finance your purchase and make smaller monthly payments instead of paying one large sum upfront. You can also consider buying used equipment, which is generally less expensive than new forklifts.
When Should You Buy a Forklift?
Even though purchasing a forklift might be a significant investment, it can be the best option in certain situations, such as:
- Forklifts form a critical part of your business operation: If your business uses forklifts often and they’re a necessary part of your operations, buying one might be the best long-term move. Renting a forklift for a while is much cheaper than purchasing a new piece of equipment, but these rental costs add up if you’re renting forklifts for extended periods. In such cases, buying a new forklift has a much higher return on investment, thus saving you more money in the long run.
- You don’t want to rely on someone else: You also need to remember that, when renting any equipment, you rely on someone else to supply you with what you need. If they have delays or don’t have forklifts available, you may face some unexpected downtime. Since unplanned downtime can cost you thousands, you likely want to avoid this. One of the advantages of buying a forklift is that you can access your machine whenever you need it without waiting for someone else.
The Benefits of Renting a Forklift
Even though there are benefits to buying a forklift, you also need to consider the perks of renting. Ultimately, you must look at which option offers you what you need. Here are some pros of renting equipment:
- Lower upfront fees: Rental fees are often less than the cost of buying equipment since you avoid a downpayment, financing fees and maintenance costs. Renting a forklift is usually much more manageable than purchasing one, making it a good solution if you urgently need equipment.
- You have fewer responsibilities: Another benefit of renting a forklift is that the rental company is responsible for repairs, service and maintenance. They’ll also provide a replacement machine if it breaks.
When Should You Rent a Forklift?
Even though many people may argue that buying equipment is always the best solution, that’s not true. In some situations, the advantages of renting a forklift make it worthwhile. Here are some examples:
- You don’t use forklifts very often: If you don’t use a forklift often, buying one may not be a worthwhile investment. Spending so much money on something that sits unused for most of the time is unnecessary, so renting one when you need it is a more effective solution.
- You only need a temporary forklift: If you already have a forklift but it needs repairs, renting could be a good option. To avoid downtime, consider renting a forklift until yours is fixed.
- You want to try various forklifts: Even if you want to buy a new forklift, renting can be a good temporary option. You can rent one for a while to test it out before you commit to purchasing it. This way, you can try different options to see what does or doesn’t work.
Choose Bohl Equipment Co. for Your Forklift Needs
At Bohl Equipment Co., we understand the importance of having reliable, high-quality equipment, whether renting or buying. We also understand that everyone’s situation is different, so we offer multiple avenues to help you get the forklift you need. Whether you’re on the market to invest in new equipment, purchase used machines or rent a forklift, we have a solution that works for you.
With 100 years of experience in equipment parts and services, our team of experts knows what they’re doing. If you’re in Ohio or Indiana and you’ve decided whether you want to rent or buy equipment, check out our locations to find one near you, and then contact us to learn more and experience our knowledgeable service firsthand.
