How to purchase your new forklift – Buy, Rent or Lease?
It’s a question that comes up a lot. Buy, rent or lease your new (or used) forklift. Each approach offers specific advantages and disadvantages. It comes down to what is right for the forklift purchaser and what is appropriate for the price and model being purchased. This is a summary of the available options that will hopefully help you to make the decision that is right for your business.
Buying a Forklift
The simplest and most popular method of purchasing a forklift. You choose your unit, give the dealer a cheque and they deliver your new unit. Appeals to many people, particularly those with no business credit rating. For many lower priced units it is the only feasible purchasing method, most lenders will not lease anything but a brand new forklift, even if purchased from a reputable dealer.
| Pros | Cons |
| Cheaper overall than rental or lease | The buyer is responsible for all upkeep and repairs (excepting warranty work |
| Easier purchase – less paperwork and no need to have a good credit rating | Not as good for business tax purposes |
| No ongoing lease expense | Purchase must be made in one lump sum |
| You can resell your forklift at any time easily | If your needs change you can’t return it to the dealer and swap for another unit |
Forklift Rental
Great for short periods of usage, renting a used forklift is the preferred method for large companies who want to spread out their expenses over a long period, and also the best way to obtain a modern, fully equipped forklift without a large capital expense or financing, which may not be feasible for small businesses.
| Pros | Cons |
| No upfront cost | Continual ongoing expense, higher than lease payments |
| No maintenance expenses | Operator is responsible for any damage |
| Option to switch to another forklift when your requirements change | Rental company can withdraw your contract at any time |
| Easy to add to monthly bills | Will never be ‘paid off’, continual ongoing expense |
| Can be returned if no longer required | Unable to recover sunk costs by reselling |
Forklift Leasing
Leasing is the third way to purchase a forklift. It’s less common than buying or rental, because it’s usually only available for new forklifts, and thus is typically a dealer supplied option. The main advantages are the same as leasing a car, a fixed repayment over several years, with the option of a renewal on a new unit or a balloon payment on completion.
While very desirable for tax purposes, leasing is not for every business as it requires you to have good credit and be able to afford the lease on a new forklift, which is something that you may not require.
| Pros | Cons |
| No upfront cost | Large balloon payment at the end of lease |
| Can return forklift at end of lease and replace with a smaller or larger unit | Responsible for al maintenance and upkeep of forklift |
| The cheapest way to obtain a brand new forklift | Only available on new forklifts, not used forklifts |
| Cheaper than forklift rental | Must have good credit |
We hope that this article on purchasing methods for new forklifts and used forklifts is helpful to you when making your purchasing decision. Remember to check out our used forklifts, and our new YMA Forklift range as well. Don’t forget we are just a phone call or email away, even if you end up purchasing elsewhere, give us a call to compare models and pricing, or for advice on unit selection.
Used Forklifts – What to Check Before Purchase
Or how to make sure you don’t end up with something you regret buying
When purchasing a used forklift, many buyers worry about getting stuck with a lemon. It’s unfamiliar territory, nearly everyone knows what to look for in a car, but what about a forklift? It’s an expensive purchase that you need to be reliable for years to come. The following is a basic checklist you should look for when shopping for a used forklift.
Please note: This article covers physical inspection of a forklift. For advice on choosing a forklift size and type, please see this article. Read more
Forklift Attachments –
Do You Need One?
What is an attachment? Where would I use one?
In the world of forklifts, attachments are often relegated to the sidelines, assumed to only be suitable for specialist applications. But if applied correctly to your task, an attachment can easily make your work quicker and safer.
So what is an attachment?
Forklifts are (generally) driven by internal combustion or electric engines. These engines power a large hydraulic pump, which pumps oil to the lift and tilt valves which control the mechanisms of the same name on the mast of the forklift. Because of the design of the hydraulic system, the ability to add several additional valves exists. These valves can tap into the existing power of the forklift and use it’s existing power to drive other functions, usually related to modifications or additions to the tilt or raise mechanism to enable more specific applications. Examples include sideshifts, rotators, bale clamps and fork positioners.
How to Choose a Forklift
Everyone knows how to choose a car. After all, most people drive them every day. But how do you choose a forklift?
To most people, forklifts appear to be all the same, but when they get down to details, they come with a bewildering variety of options and accessories, lift heights and classes.
What is important to remember is that the right forklift for you is the one that does the job you need, reliably and at a minimum of expense. For 90% of buyers this will be a general purpose, LPG powered forklift with a capacity of 1.5 to 3 tonnes. These are the most common types of units available in Australia, and with good reason. Think of them like a Holden Commodore, reliable and flexible, able to be used in a wide variety of applications. But by no means are they the only type of units available.
