As a transportation broker specializing in hauling forklifts, we have arranged shipments for Sun Equipment to various locations around the country. Our experience using proper forklift shipping methods goes hand in hand with Sun Equipments requirements to deliver their equipment to their customers efficiently and reliably.
– Debbie Felix, RLD Transportation Inc.
Buy A Used Forklift From Sun Equipment
Forklift Options - Buy or Lease: What’s Best for Your Business?
As a forklift operator, your monthly expenses can vary greatly depending on how much work you need to get done, how many trucks are going to be on the job site, and where you are leasing or purchasing the forklift from.
Forklifts are quite expensive when you opt for those that comply with industry standards. So, deciding on whether to buy or lease them should be your first priority - even before you decide on the make, model, and features.
Since both those options can seem confusing to many, here is a brief guide on buying vs leasing forklifts that will help you make the right decision.
Buying a forklift
The first stage in the buying process involves comparing various models, features, prices, customer reviews, and service history of manufacturers. Because this is a permanent purchase, you have to be absolutely sure about your decision.
Can be a one-time expense
When you lease a forklift, you have to sign a contract that requires you to keep paying for the equipment even when you are not using it. To avoid that, many businesses prefer making a one-time purchase that allows them to be in full control of the machine. Furthermore, buying a forklift can help you in taxation. You can categorize your equipment as an asset and claim the amount spent on it as a business expense when filing your taxes.
Ideal for occasional use
Buying a forklift is ideal for those companies that won’t be getting a lot of work done with the equipment. If you are going to use your forklift occasionally, it makes sense for you to purchase it rather than leasing it. Since a monthly contract on a forklift can prove to be expensive, it is worth putting down money initially.
Can’t be upgraded
When we say forklifts are a long-term purchase, we mean it. Even the largest organizations can’t afford to switch to new equipment every time there is an upgrade. So, once you buy yours, you will be stuck with it for at least a few years, depending on the warranty of your forklifts. That said, this applies to all big, one-time purchases, including vehicles and property. And just like in their case, you need to be satisfied with your choice, to begin with, when you buy a forklift.
Leasing a forklift
Most forklift companies require you to lease a forklift – regardless of how practical it might be for your business or how much money it might save you if you purchase a new one. So, here is what you need to know about leasing a forklift.
- Ideal for regular use
If you are going to get the most out of your forklifts, it is better to consider leasing them than paying a one-time price. That’s mostly because you don’t have to pay 100% of the cost upfront and can pay in regular intervals for as long as you use them. Since forklifts can go through some heavy wear and tear, leasing also allows you to test your equipment for some time without worrying about making a commitment.
Access to new makes, models, features
Leasing a forklift gives you access to the upgraded models in the market. You can also try out different manufacturers to see which one you are more comfortable with. Leasing allows you to get your hands on any new features that may be launched during the period of your contract, so you never miss out on the latest forklifts in the market.
No need for maintenance
Forklifts require continuous maintenance and you might have to look after them even when you are not using them. And maintenance can be expensive when added up. But when you lease a forklift, you don’t have to bother yourself with routine checkups. The leasing company does it for you without any additional cost, helping you save big.
A lease contract can range anywhere between 3 months to 5 years, depending on which company you are partnering with. And you will be obliged to pay for the equipment throughout your contract period - regardless of whether or not you use it. The recurring bill may not be the best financial decision for every business.
Not an asset
Unlike a bought forklift, you can’t claim leased forklifts in your taxes. So, it won’t be considered an asset. In fact, it will be a liability and won’t add any value to your company’s finances. Therefore, leasing may not be ideal for businesses looking for a tax write-off.
Bonus option: Buying used forklifts
Buying used forklifts is a great way to save money. On average, new forklifts cost around $50,000 while used ones hover around $20,000 to $30,000. So, used forklifts are definitely an economical choice.
Besides, you can still categorize them as business assets because you are paying full price for them. And because you are repurposing the equipment, you are contributing to the environment saving the planet.
Contrary to popular belief, used forklifts can last long enough, especially if they are maintained properly. So, you don’t have to worry about ending up with a poorly performing machine.
At Sun Equipment, we buy and sell all makes and models of used forklifts for sale. Check out our catalog here.
Finance your forklifts
Forklift prices are often affected by dealer profit margins as well as customer demand for certain models, brands, and accessories. But that does not mean you can’t buy a forklift in your budget.
Sun Equipment is a national leader in forklifts in the United States. With 20+ years of sales, we are confident of the quality of our used forklifts. Thus, we offer financing options to businesses - no matter the size of your operation.
Finance your purchase and join us to reduce the production of new equipment by promoting the reuse of forklifts that are safety-tested for all kinds of workplaces.
Start at sunequipment.com to give your business a lift!