Leasing vs. Buying: Which is best for you?
February 1st, 2019 - We continue with the topic of leasing material handling equipment. Growing businesses face a decision that can be intimidating. We are here to help you out!
As consumers, we are given so many choices that it makes it difficult to decide. You have probably already spoken with a material handling expert several times trying to find the right equipment for your application. After some time doing research and picking the right equipment now you have another decision. How will you finance the equipment? Buying a shiny new lift truck is always exciting. However, growing businesses can often benefit from making the financial decision to lease the equipment instead of buying.
Not sure if leasing is right for you? Here are 5 reasons why you might want to consider leasing your equipment instead:
1. You don’t want the responsibility of fleet management.
Owning your forklift leaves you with a tough choice when as it reaches the end of its economic life. Do you trade it in to upgrade your equipment? Or, do you sell it?
When you lease your forklift, you can simply return your forklift at the end of its lease and replace it with a brand-new forklift. If you decide you want to keep your equipment, many lease agreements will still allow you the option to purchase your leased equipment or extend your lease.
2. Stay with the times!
Nobody wants to be left behind. Technology advances quicker than consumers can even consume it. Leasing your forklift gives you the opportunity to replace your fleet as often as yearly with the newest models. You can take advantage of the latest innovations in alternative fuels, safety features, or telemetry. As an added benefit, a newer fleet also means a more reliable fleet. For you, that means a safer work environment, less downtime, and lower operating costs.
3. Stay flexible.
If you expect your business to grow, shouldn’t you expect to have a fleet of forklifts that can grow with it? Leasing gives you the option to adjust your fleet size and type at the end of each lease term to keep up with the changing needs of your business.
4. Not looking for anything long term.
Are you not sure how long you’ll need a forklift? Maybe you know you will only need the equipment for a short period of time. You might want to opt for leasing. Leases can be as short as one to two years, without a long-term commitment.
5. Save some cash!
Leasing can also help if you want to preserve cash to invest in your growing business. When you choose to lease, you’ll often have a lower monthly payment than you would if you chose to buy. You’ll owe little to no money up front.