When buying a forklift, it’s essential to recognize that these machines are crucial for businesses needing to move heavy items frequently in storage facilities. They’re designed to be both efficient for transporting and organizing goods while ensuring worker safety. As such, forklifts are instrumental in increasing warehouse productivity while ensuring that workers are able to accomplish their jobs with very minimal risk of injuries.
If you’re starting to have difficulties transporting items within your warehouse, then it might be time to either buy a forklift of your own or look into forklifts for rent. To know which works best for your business, here are some points to consider to determine whether buying or renting is the right move for you.
Here are the 6 factors to consider before getting a forklift for your business:
1. Operational Requirements
Your top priority should be selecting the right type or model of forklift to meet your operational needs, so things to consider when buying a forklift, such as the expected workload and any specific features required, like a particular load capacity or a more compact design for navigating narrow warehouse aisles.
Once your operational requirements are mapped out, you’ll then have a clearer idea of what specific type or model of forklift you need to look for in a local dealer or rental company. Then, depending on what’s available, you’ll either have to buy or opt to rent instead.
2. Budget
Investing in new equipment is costly, which is why many business owners choose to rent instead as they see it being the cheaper alternative. However, that isn’t always the case. Buying a forklift upfront can be the more economical option in some situations, particularly if you see your business making full use of the forklift for the long term. Note that your forklift purchase may also qualify for a tax deduction, which can help drive down the overall acquisition costs.
That being said, renting can still be a viable option. Not all businesses have enough capital to afford to buy a forklift right off the bat, so renting can be a way to obtain the equipment without having to shell out a huge amount. Renting also wouldn’t strain your current finances as much as buying upfront, which allows you to invest your capital in your other business goals in the meantime.
3. Duration Needed
While some businesses will require a forklift on a regular basis, there are also those that may only need one to fulfill short-term projects. Hence, consider the duration in which your business will make use of the forklift. For instance, if your warehouse only needs a forklift due to seasonal demand but wouldn’t necessarily have use for the equipment when it’s off-season, then renting for the duration of that period is the best option. Meanwhile, if forklifts are to be an integral part of your operations, buying can give you the assurance that the equipment will be available to you whenever you need it.
4. Maintenance Costs
When you allocate a budget for repairs, maintenance, and insurance, things to consider buying a forklift, as this is essential. Conversely, if you choose to rent a forklift, the maintenance costs are typically covered by the rental company. However, do keep in mind that if you damage the rental forklift, you may still end up having to pay hefty penalty fees.
5. Access to Newer Forklift Models
Rental companies may give you access to newer forklift models that you couldn’t afford to buy upfront, allowing you to take full advantage of advanced features without breaking the bank. This could also be a way for you to try out the specific model first before fully committing to buying one of your own in the future.
If you do have the means to purchase the newer model upfront, however, then it could prove to be the better option because the forklift will always be on hand as opposed to the limited availability that comes with rentals.
6. Resale Value
There may come a time when you no longer need a forklift or want to upgrade to a newer model, so as things to consider buying a forklift, remember that owning it allows you to sell it and recoup some of your investment. Obviously, this wouldn’t be possible in a rental setup, though you can ask your rental company if they offer any rent-to-own programs that give you a chance to eventually keep the forklift.
Having a forklift for your business can be a game-changer in the way you manage your warehouse. Even so, it’s important to not rush into purchasing one and instead evaluate first whether buying or renting is the ideal move. Take the factors discussed in this article into consideration to ensure you’ll be able to secure a forklift in a way that suits your business requirements and financial means.
