No matter what industry you work in or what kind of warehouse you manage, planning out a budget for the incoming year is something every business must do. It’s a process that gives you a game plan for how to approach the next year financially. To do it right, you need to take everything into account including leasing vs buying equipment.
Planning for Future Expenses
Deciding whether to lease, rent, or buy a forklift is a difficult decision, but it’s a choice you have to figure out if you’re going to put together an accurate budget. Ultimately, it depends on the goals of your organization, but how do you choose the best option for your business? To get the answer to this question, you need to understand the benefits that are associated with each option.
The Advantages of Buying a Forklift
Given an unlimited budget, what company wouldn’t choose to buy all of their equipment? Unfortunately, this isn’t the reality of most companies. You have to choose what makes sense for your business economically. Here are a few benefits to buying:
- Resale: Purchasing is the only option that allows you to resale the equipment once you don’t need it anymore. The better the lift truck is maintained, the more you’ll get back for it.
- Customization: Since you have ownership of this piece of equipment, you can have it customized specifically to the needs of your business.
- Tax Deductions: Forklifts that are purchased are eligible for tax deductions.
- Liability: When you rent material handling equipment, it needs to be returned after a certain amount of time and in good condition. If you scratch or ding a forklift you own, it’s no problem.
The Advantages of Renting
There’s no question that forklifts are an essential tool for a warehouse, but some warehouses need them more than others. This is a flexible and cost-effective option that allows you to have a forklift only when you need it. The associated benefits include:
- Flexibility: Renting is a flexible option that gives you the ability to add or remove forklift from your fleet on demand. You also have the freedom to choose a long-term forklift rental or short-term.
- No Commitment: Rentals are paid for on a monthly basis, so you won’t be stuck with machinery you don’t need.
- Reduced Maintenance Costs: Maintenance is normally built into a rental contract, meaning the provider does the maintenance at no additional cost to you.
The Advantages of Leasing
The biggest benefit of leasing is lower month-to-month payments when compared to buying or renting. Other interesting benefits are:
- Replacement Cycle: When you lease a forklift, you get to determine the amount of time for the term of the lease, allowing you to plan for equipment replacement.
- Brand New Equipment: Leasing grants you the opportunity to always have access to the latest and greatest equipment on the market.
- Flexibility: Once the leasing term is done, you can adjust as needed to scale or decrease your fleet size.
We Have the Forklift Solution You Need
Are you in need of a lift truck, come to Brennan. Whether you want to purchase, rent, or lease your next forklift, we have you covered. We have vehicles from some of the most reputable brands in the industry.
Contact us today to learn more about our services.