Five Reasons to Rent Instead of Buy a ForkliftMarch 13, 2020 9:10 pm Leave your thoughts
Investing in new machinery for your business is a big decision. It often involves financing, which includes long term payments and thorough planning. Unlike buying a forklift, forklift rental in Lafayette, LA is a short-term commitment that proves advantageous under certain circumstances. Here are five reasons to rent rather than buy a forklift:
- New business: Forklift rental offers flexibility that is not available when you commit to buying. If your business is currently evolving, you may have no idea how often you’ll actually need a forklift. Buying now could mean placing your forklift in mothballs for an indeterminate time if your business fluctuates. Rental reduces long-term commitments, which could be sabotaged during a volatile phase.
- Easier tax write-off: You’ll need to discuss this with your CPA to be sure it applies to your situation, but normally a forklift purchase is treated as a depreciable asset. This makes tax filing much more complex, and if you are doing taxes yourself, you may not wish to risk mishandling this. Rental is an expense that is easy to report on your Schedule C. Our best advice is to discuss the situation with your tax professional to be certain of the advantages and disadvantages.
- Reduced cost of operation: The more forklifts you own, the more time and money you will spend on forklift maintenance. That is why you do not want to own more forklifts than you need. If you are still determining how many forklifts are necessary for the operation of your business, rental allows you to figure that out without a long-term commitment. It helps you see whether you consistently need four forklifts or a dozen. That leads to better decision making when it is time to invest in capital, and reduces your maintenance expenses.
- No maintenance responsibilities: Other than meeting the requirements in the rental contract, you do not have to worry about maintaining rented forklifts. That is up to the dealer. This can be a significant expense, and if a breakdown occurs during a busy time, you are likely scrambling to affect repairs and find a replacement. When you rent, you merely return the forklift and we give you another one to take its place.
- Best option for seasonal work: If your business is largely seasonal, it is often more cost effective to rent rather than buy. No one wants to make payments while a business barely brings in a profit. When you use a rental program, you only have forklifts on the premises when they are needed and return them when your busy period ends. This way, you are only paying for them when your business is at its high. Otherwise, during the low points, you still have finance payments and maintenance at a time when you need to reduce expenses.
George’s Lift Truck Service, LLC is a forklift dealer. If you are looking into forklift rental or you require forklift maintenance in Lafayette, LA, contact us today to see what we can do for you and your company.
Categorised in: Forklift Rental
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