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Pros And Cons Of Purchase, Lease & Rentals Of Forklift Trucks

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forklift trucks

Businesses handling heavy loads need forklift trucks to handle material. They can either buy forklifts or lease/rent them. Businesses should weigh these options carefully because they add to employee expenses. The best way to manage material handling costs is by choosing an effective arrangement for heavy equipment. The challenge is a business being sure they are making the right choice. 

Here is a breakdown of the pros and cons of purchasing, leasing, and renting forklift trucks for better decision-making.

Purchasing a Forklift

Purchasing a forklift in India is a great idea for companies with sufficient capital and access to cheaper lines of credit. Buying gives the company complete ownership of the forklift. The machine offers longevity by being maintainable within the premises.

Pros of Purchasing Forklift Trucks

– Customisable Equipment

Renting or leasing a truck limits operations to the features available in the forklift. Alternatively, companies can customize the forklift to handle specialized work by buying equipment.

– Machine Familiarity

After a business acquires a forklift in India, operators and managers get familiar with its operations while working with them. A better alternative than renting, acquiring a forklift makes employees responsible, and they adjust to various types of machines.

– Solution for Tougher Jobs

Buying a forklift is a great idea for rigorous warehouse and distribution duties, even on rough terrains. In case of damages, the company takes full responsibility and conducts necessary repairs. When dealing with rental companies, fixing this equipment and completing duties on time may take a lot of work.

Cons of Buying a Forklift Truck

– Higher Buying Costs

Depending on a company’s budget, the initial cost of acquiring a new forklift in India may be high. Most buyers resort to making partial payments that may be higher than quoted forcing most operators to stick with inefficient low-cost models.

– Higher Maintenance Costs

The business buying the forklift truck will be solely responsible for managing the maintenance costs. Depending on the mechanical damages, fixing the forklift might be challenging, leading to the abandonment of the equipment.

Leasing Forklifts

Leasing and renting are the same concept, only that renting forklifts are for a shorter period than a forklift. Renting is great for seasonal peak periods, while leasing works for long-term projects. This option also has its advantages and disadvantages to consider.

Pros of Forklift Leasing

– Access to Current Technology

Forklift models change from time to time, and leasing allows for ongoing replacements. By replacing an old forklift with a new model, operations and productivity in a business improve with new technologies.

– Testing New Models

Leasing and renting forklifts in India allows operators to test new equipment without committing to buying it. After the end of a lease term, it is easier to decide whether to purchase or return the machine.

– Budgeted Maintenance

Lease and rental forklift trucks are easy to maintain because all the costs are included in the monthly payable fee. Although operators can cover maintenance fees independently, the maintenance package provides a reasonable amount for proper budgeting.

– Low Initial Costs

Leasing or renting a forklift truck enables operators to benefit from the performance of a costly machine without paying the total buying cost. Considering a lease runs for a few years, the monthly maintenance and lease costs can fit forklift usage instead of paying for new machinery.

Cons of Forklift Leasing

– Lease Costs Might Rise

If an operator opts to buy a material handling forklift after the lease period, the price will be higher than that of buying the one-off. Businesses end up paying a premium for a product they will return to the dealer.

– Possible Overuse Penalties

The lease agreement provides the maximum allowed usage limit in terms of hours, weeks, months, or years. If the operations exceed the provided limit, there will be possible costly penalties. Subsequent leasing with the same provider can waive these penalties.

– Poor Maintenance by Leasing Companies

You should properly clarify the service details of a maintenance agreement before any business enters a lease agreement. Operators must read the agreement and conduct due diligence to clarify any service doubts.

Choosing between purchasing, renting, or leasing a forklift is a business decision determined by the type of operations. Although there are more perks to owning one, most companies rent this equipment for flexibility. While deciding on the best arrangement to choose, it is crucial to consider business changes in the years to come.

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