If you run a warehouse, factory or retail distribution centre, you might be thinking of getting a forklift, or a fleet of forklifts, to move and stack heavy loads, and to improve overall efficiency and productivity in your workplace.
The question is – do you buy your new forklift for this essential work, or do you hire one instead? In this short article, to help you make the right choice for your business, we look into the pros and cons of both hiring and buying a forklift.
Buying a forklift is a common choice for many businesses, and for most, it’s usually the right choice. But, as it is when buying any commercial vehicle, there are some downsides to buying that need to be considered, before parting with any cash.
Ownership: Buying your forklift gives you complete ownership and control of the vehicle. You can customise it as you wish, and you won’t have to worry about returning it at the end of the rental period.
Cost-effectiveness: If you use a forklift regularly, buying one can be more cost-effective, as you don’t have to pay rental fees, and once the forklift finance is paid off, you have a freehold vehicle with only maintenance fees and fuel to cover.
Tax benefits: You may be able to claim depreciation on your forklift as a business expense, which can reduce your taxable income. Although, this isn’t always the case, so make sure to check before buying.
Upfront costs: The initial cost of buying a forklift can be high, and it may require a significant upfront investment.
Maintenance costs: Unlike renting a forklift, when you buy one, you will be responsible for repairs and maintenance – costs which need to be budgeted for and can mount up over time.
Obsolescence: Over time, your forklift, whether it’s a diesel, electric or LPG forklift, will become outdated, and may need to be replaced, which as you’d expect comes with additional costs.
Hiring a forklift is another common choice many businesses make for several good reasons. But, as with buying a forklift, there are specific pros and cons to hiring, some of which you might not have considered.
Flexibility: Hiring a forklift gives you the flexibility to use the equipment only when you need it. This can be beneficial if your workload fluctuates, or your business is seasonal.
No upfront cost: Hiring a forklift can be more cost-effective in the short term as you don’t have the upfront costs to worry about, and the rental fees can often be deducted as a business expense.
Maintenance and repairs: When you hire a forklift, the maintenance and repairs are usually covered in the rental fees, so it won’t be a cost you’ll have to find in a hurry.
Higher long-term costs: Over time, rental fees will add up, and you might end up paying more in the long run than if you had bought a forklift in the first place.
Limited customisation: Hiring a forklift might limit your ability to customise it in a way that suits your business and its specific needs.
Availability: If there is a high demand for forklifts, you might have trouble renting one when you need it.
When deciding whether the buy or hire a forklift, there is no one-size-fits-all answer. So, think about your business needs, the forklift's usage, and your budget before making a decision. If for instance, you require daily forklift use, you might think of buying one, but, if you only need one sporadically, and have limited storage space, hiring one might be best. But, before making your decision, have a good chat with your forklift provider, who should be able to give you honest answers to any questions you might have.
Whether you’re looking for forklift rental, or to buy a forklift, contact Beds & Bucks Forktrucks today. We have a wide range of new and used forklifts in stock, for sale or rent, and we also provide professional forklift maintenance, repairs, and refurbishments.
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