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Steps to Purchase Your New Forklift - Rent, Purchase or Lease?

Apart from purchasing, businesses now have the option of renting and even leasing new as well as used forklifts for their material handling jobs. The debate on whether to buy a new expensive one or take one on lease or rental can be confusing. Moreover, each of these approaches has their own advantages and disadvantages which further makes the process confusing.

To make it easier for you to select the right approach, we have created a list of some important pros and cons of each of them.

Buying forklifts

This is the oldest and most popular way to get yourself a new or used forklift. You simply select a model, pay for the same and the dealer will deliver the forklift. This is often the only method with low-cost and used forklifts as most of the lenders only lease new forklifts. For large projects, managers usually buy a few new ones and lease a few old ones.

-Pros

•Less paperwork and easier purchasing process

•Can easily resell the forklift anytime

•No ongoing expenses as machinery should be in perfect working condition

•Latest technology adopted

-Cons

•You are responsible for all the repairs and maintenance

•Not good as far as taxes are concerned

•Requires lump sum payment

•You do not have the option to replace your unit with another

Renting forklifts

If you only need to use a forklift for a short duration, Toyota forklift rental can be a great choice. Moreover, this is also a cost-efficient want to get yourself a modern forklift with advanced features without actually paying for a new unit.

-Pros

•No expenses related to maintenance

•No upfront investment

•Switch to another model when requirements change

•Easy monthly bill payments

-Cons

•Continuous ongoing expense in the form of rent

•Operator is responsible for accidents and damage

•Can never be “paid off”

•Rental company has the right to withdraw your contract anytime

Leasing forklifts

Leasing is the least popular option as this is usually an option offeredwith new forklifts. However, there are used forklift sellers in California that offer used forklifts on the lease. However, to lease a forklift, you need to have a good credit rating.

-Pros

•No upfront investment

•At the end of the lease, option to opt for a different unit

•Cheaper than renting a forklift

•Cheapest way to get a new forklift

-Cons

•Requires large payment when the lease ends

•Usually offered on new forklifts only

•You are responsible for all the repairs and maintenance

•Requires good credit

As you can see, each approach has its own advantages and disadvantages, and it is you who can make the right decision after understanding each of them thoroughly. No matter what option you select, make sure that you research about the seller to ensure that you get a quality product with world-class service at a reasonable price.

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