Heavy Construction Equipment: Repair, Troubleshooting and Maintenance

Renting vs. Purchasing a Forklift

29 June 2015 by Clifton Barnes

When trying to decide whether you should buy or hire a forklift, the primary deciding factors should be the cost and the payment options. If you think that you might use the vehicle more than a couple times every month, and, if purchasing it will cost you more or less the same than hiring it over extended periods of time, it might be a better option to purchase it. If you're still not decided as to which is the better option, here is a comparison between forklift hire and purchasing it.

Purchasing a Forklift

Whenever you purchase a vehicle, the ownership risk is all on you. As a result, whenever the vehicle breaks down, you will be the one to suffer the repairing costs. In order to avoid this, you will need to take out insurance to protect the vehicle from accidental damage or theft.

Another disadvantage of purchasing the vehicle is that unless you buy it outright, you will need to take out life cover for the financing period in order to be able to pay for it. Therefore, you will need to pay a monthly interest on top of the monthly installments. Not only that, but you will also need to have a gap cover for the difference between the vehicle value and the insured amount. Before making a decision, make sure to calculate the monthly costs, as well as the depreciation possibility of the forklift over time.

Renting a Forklift

When looking to rent a forklift, keep in mind that the vehicle will never be your property. You should also seek a reputable company to rent from in order to be assured that you will receive relatively new or refurbished vehicles. Old pieces of equipment might cause you profit loss in the long run by not working properly.

Because you don't have to carry the risk of ownership and pay the extra costs usually associated with purchasing a forklift, renting one might be a better idea. You should also look for companies that allows for "flexible" rental programs. With flexible contracts, you are allowed to add vehicles to your fleet during busy periods, or remove them during quiet ones, helping with the dynamism of your business.

Because day-to-day rentals cost much more than long-term ones, you should select this package only if you plan to use the equipment for a single project, or on occasion. For long-term contracts you should make sure to get the packages that include servicing and maintenance, otherwise you would be better off purchasing the vehicles yourself with plans for maintenance.

Contact a business like MLA Holdings Pty Ltd if you have specific questions about renting a forklift.

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