A lot of companies have to decide whether they want to buy or lease equipment. Customer demand is one of the key factors of consideration in this. However, purchasing equipment is very expensive, and solutions such as forklifts leasing usually work out more economical, keeping down the overall cost of production. Leasing is also generally a bit more flexible. It saves money, allows businesses to meet temporary demands, and can avoid long term commitments.
Forklifts Leasing Gives Flexibility
A leasing agreement is a temporary agreement. Should you come to the conclusion that it isn’t right for you, the equipment isn’t yours either. Additionally, when you lease, it means you don’t have to worry about the maintenance costs. Those are factored into your leasing agreement.
Forklifts Leasing Can Meet Temporary Demands
Leasing is a fantastic alternative to owning, particularly if you only need this equipment irregularly. Perhaps you have a sudden large order that must be completed, or perhaps you only require a forklift for certain weeks out of the year. Whatever the reason why you have an occasion demand, there is no point in purchasing an expensive piece of equipment unless you will also use it a lot. Leasing is slightly different from renting, any you may even want to consider renting in some situations.
Forklifts Leasing Can Save Money
All businesses want to save money as much as possible. By taking on a lease agreement, you won’t have to pay for expensive maintenance fees, insurance fees, servicing and repairs, and more. Sometimes, you can even lease a forklift with an operative, meaning you can even save on personnel costs.
Additionally, when you lease heavy equipment, you can access some interesting tax benefits. All the expenses you may will be fully tax deductible. When you purchase, 50% of the purchase price can be deducted and that will be all for the lifetime of the machine. By leasing, however, you can make quite significant savings because pretty much everything is deductible.
Additionally, you may not require as much or as secure storage space if you ease your equipment. When you buy a forklift, you are responsible for its insurance as well. This means that you may need to invest in expensive and large storage facilities that meet the requirements of your insurance company. When you lease, by contrast, the insurance is paid for by the company that owns the equipment. Hence, you won’t need to invest in storage either.
Before you take out a lease, however, there are a few things that you should take into consideration:
- How long do you need a forklift for?
- What rates are available and will you get discounts for taking out a lease for a longer period of time?
- Are there any extra fees that you will have to pay for, or is the quoted price the exact price you will pay?
- Can the lease company provide you with forklifts with special features as per your own requirements?