Many businesses that regularly use forklifts for some reasons are often confronted with the tough decision of whether to buy or go for forklifts for rent. Both choices have a number of benefits and demerits, and therefore, the decision should be based on a logical analysis. To make the right decision, you have to weigh the cost and the benefits of each of the two choices.
In most cases, the most economical decision is to rent. This is based on the myriad benefits associated with renting and the obvious costs associated with buying. Below is a rundown of reasons why deciding to find forklifts for rent is a wiser decision compare to buying.
The greatest demerit of buying a forklift has to do with the high initial capital investment required. Forklifts are quite pricey and buying one can take a toll on a company’s capital.
By choosing to go for a forklift for rent, a company can save a significant amount of money since it won’t have to incur such a huge cost. Long-term hires allow the renting company to organize with suppliers to be making weekly or monthly payments, which is quite convenient.
One of the arguments made by those who choose to buy forklifts as opposed to getting forklifts for rent is that by renting the equipment, one does not get to own it, and therefore, rented equipment does not add anything to a company’s lift of assets. However, the truth is that forklifts depreciate with time, and by choosing to buy, a business has to incur the cost of depreciation. On the other hand, this is a cost that those who choose to rent do not have to worry about.
The cost of maintaining a forklift is quite significant. By choosing to buy a forklift, the cost will squarely lie on you. Although those that choose to buy can factor this cost as a cost of operation, maintenance needs may occur unexpectedly a take away a considerable amount of a company’s money.
On the other hand, those who choose to rent forklifts benefit from the fact that the supplier is responsible for the servicing and even replacing. The supplier can also handle issues such as downtime. In a nutshell, choosing to go for a forklift for hire instead of buying will save you from having to incur the cost of maintenance.
When you choose to buy a forklift, you don’t have a lot of options when you want to upgrade; you have to dig dipper in your pockets to buy another one. On the other hand, getting a forklift for rent affords you the opportunity to simply ask the supplier for a swap if need be.
Overall, it is apparent that choosing to rent a forklift is more economical compared to buying one. Although buying ensures that the buyer truly owns the asset and can modify it to meet more specific needs, it comes a hefty cost of high initial capital investment. Furthermore, the owner has to incur the cost of regular and unexpected maintenance. To upgrade the equipment, the owner has to buy a new one. Clearly, the benefits of renting forklifts outweigh the benefits of buying and even the demerits of renting. Therefore, if you are wondering if you should buy or rent a forklift, the safest and the most rational decision is to rent.