You may decide buying a forklift outright doesn’t fit into your plans, or your finances. That’s ok- you have other options- specifically two lease plans and even a Rent-to-Own option.
These are structured much like the plans you might find if you’re leasing a car for your family.
An FMV lease carries a lower monthly payment that keeps operational expenses down during the term of the lease (typically 12-72 months). At the end of the lease you have the option to return the forklift, or purchase it at Fair Market Value (FMV) for right around 30% of the original sale price.
Then there is a thing called a “$1 Lease.” Higher monthly payments but a $1 buyout at the end and you own the machine.
Rent to Own options include a previously agreed-upon monthly payment that goes towards purchase of the forklift. These are less common due to the higher monthly payments.
Leasing does provide some benefits over owning outright- leasing gives you a fixed monthly number, making budgeting easier. If you buy a lift there’s a large amount of cash out the door upfront.
There are limits built in to a lease plan. Typical lease plans include a limit in the hours your leased lift can be used. Typically, this number is about 2000 hours per year.
So the decision in leasing vs. owning is really up to you. If you have a sudden need for a new forklift you’ll want to weight the upfront cost vs. the monthly payments involved in a lease plan.
If you know you’re going to need a new lift soon, but not right away- you may be able to plan for the upfront cost.
Then there’s the hours-limit involved in a lease. How much do you expect to use your lift? At 8 hours a day, five days a week- that’s just over 2,000 a year. If you’re using your forklift on multiple shifts per day, a lease plan may not work for you.
We’ve got your back. Give us a call and we can talk you through the maze that financing a forklift can be.