Buying forklifts vs. forklifts for rent: Exploring the better option for your business
From day-to-day warehousing to moving heavy materials at remote work sites, forklifts are essential machines with different use cases across many industries. Regardless of the industry your business is in, chances are it will eventually need a forklift. The questions are just when you need them, how many you should get, and how you plan to acquire them.
The question of acquisition often hinges on whether the maths of ownership or renting are more favourable at a given moment. Each option has its advantages and drawbacks and it will be up to you to find out which option and suppliers are best for your situation.
Still, there are some things that generally hold true when it comes to renting or buying heavy equipment like forklifts. Outright purchasing a forklift can provide long-term stability but only when you can keep up with the maintenance and the relatively high cost of heavy equipment. Exploring forklifts for rent can be much more cost-effective, but it can become expensive over time, especially if you need to operate them close to round-the-clock for years at a time.
Here, we’ll delve deeper into the general benefits and disadvantages of purchasing and renting forklifts. If you need forklifts or similar heavy machinery, be sure to work with your operations managers and finance team so that you can make the best choice for your business.
1. Cost implications
Buying a forklift: Purchasing a forklift requires a significant upfront investment, especially if you want to go brand new instead of secondhand or refurbished. For many small-to-medium-sized businesses, the financial barrier may effectively keep them from considering this option, particularly if they have limited needs. However, the long-term cost of ownership can be lower than renting, especially if the equipment is supported by a locally based supplier and will be in constant use over several years. As far as accounting goes, once purchased, the forklift becomes a business asset, with no recurring rental payments.
If ownership is a necessity but finances are limited, options such as leasing-to-own can make purchasing more accessible by spreading the cost over a longer period. As mentioned, the cost can be brought down further by considering refurbished or other secondhand forklifts in good condition.
Renting a forklift: In most cases, renting provides a lower initial cost, as you only pay for the time you need the forklift. This makes renting ideal if your business only has temporary or seasonal needs.
Things can be more complicated if renting becomes a regular requirement since the cumulative cost can eventually exceed the cost of purchasing. Additionally, rental or lease agreements may also include other fees, such as delivery charges or penalties for exceeding usage limits, which may add to your overall expense. Rented forklifts are also a recurring expense and must be logged as such in your books.
2. Maintenance responsibilities
Buying a forklift: Owning a forklift means that its maintenance becomes your responsibility. If you’re using forklifts round-the-clock, your machines may experience serious wear and tear, which can cause maintenance costs to add up. However, some may see this as an acceptable trade-off, since one can better control the quality and timing of maintenance to avoid unexpected downtime.
Renting a forklift: One of the biggest advantages of renting is that most maintenance is typically the responsibility of the rental company. You may be expected to keep the machines reasonably clean or topped up with fuel, but breakdowns or maintenance issues are typically handled by the rental provider, often at no additional cost. For businesses that want to avoid the time and expense of maintaining a forklift, renting can be an attractive option, even for longer-term use. To get the most benefits, however, choose a rental company that can guarantee minimal downtimes in case of a breakdown.
3. Flexibility
Buying a forklift: Once you’ve purchased a forklift, you’re committed to that particular piece of equipment, possibly for several years. This can be good or bad, depending on your situation. Having your own forklift can provide your operations stability, but it can also limit your ability to quickly adapt to changes in your business.
For instance, if you bought a loud diesel forklift and your operations suddenly need to work in a neighbourhood with noise restrictions, you might suddenly find yourself with an expensive machine that you can’t use. Also, even if you were able to maximise the use of your forklift, you’ll still need to go through the process of selling or trading in the old equipment, which can be quite time-consuming if you’re not willing to sell under fair market value.
Renting a forklift: In contrast to ownership, renting drastically reduces your commitment, making it ideal if your business experiences fluctuating demand or has a project that only requires limited use of a forklift. In most cases, rental agreements can be adjusted to increase or decrease the number of forklifts in your fleet or switch to different models without any long-term commitment.
This flexibility is particularly useful if you face predictable seasonal changes in workloads or need specific forklifts for unique jobs, such as quiet electric models for indoor use or when working close to residential neighbourhoods. As an extra perk, renting can give you access to the latest models and technology, particularly when you choose rental companies that update their fleets regularly.
Flexibility or long-term stability: What does your business need?
The choice between buying or renting a forklift always comes down to your specific operational needs. Purchasing a forklift is a long-term investment that pays off for businesses with stable, ongoing demand but at the cost of some flexibility. Renting, on the other hand, tends to provide more flexibility for companies with short-term or unstable requirements but at a comparatively disadvantageous long-term cost.
To ensure you’re making the right choice, try to assess your immediate needs and weigh them against what your business might require in the medium-to-long term. This way, you can maintain the best possible mix of availability, cost, and capabilities for your operations.
