When it comes to your business, having the right equipment is essential, but the question remains: which is better, purchasing or renting equipment? All applications are unique, and it is important to evaluate your individual business needs and tailor them to your equipment purchasing decisions. Learning the benefits of renting and buying can help you find the perfect fit for your facility.
Consider Your Budget
PURCHASING COSTS: Although the cost of purchasing a forklift may seem high, it may be the most cost-effective option for many businesses. In addition to the advantage of owning the equipment immediately, there are no service fees, finance charges, or interest charges if you purchase cash. In terms of taxes, Section 179 deduction allows the full purchase price of new industrial equipment (up to $1 million) to be deducted from the business’ balance sheet based on their depreciation methods. Once your business no longer needs the forklift it can be traded in or resold later to regain some of the business’ original investment.
RENTAL COSTS: Renting turns the cost of forklifts into more manageable monthly payments. This fixed cost allows businesses to preserve the company’s cash instead of depleting it with a big purchase. Additional costs, such as maintenance and repairs, are included, which ensures that you pay a fixed rate during the time of your rent with no surprise or hidden charges.
Long-Term or Short-Term Needs
It’s important to consider how frequently your equipment will be used as well as how long you plan to have your forklift running. Rental units are convenient to prevent production from falling behind if your forklifts need repair. Renting has the added benefit of adding more units to your fleet during peak production times, without the hassle of purchasing, maintaining, and storing equipment.
However, adding a new or used forklift to your fleet might be the best choice if your business needs the equipment long term. By always having the forklift on hand, your business has the added benefit of accessing it when you need it. This leads to less downtime, which will save money.
Take Your Application Into Account
Knowing your application will help tremendously when deciding on material handling equipment. Maximum lift height & lift capacity should be considered, as these factors can greatly impact the type of unit you need and whether you should rent or buy. If you know forklift will be needed in extreme applications such as 24 hour run time or in harsh conditions, it could be more beneficial to own your unit. If you wear a rental down, you may be liable for any damage.
Unexpected equipment failure can be costly. When it comes to owning your equipment, you will have to cover the cost of repairs and maintenance. This also means that during services and repairs, you may experience downtime and a halt in your day-to-day business operations. A benefit of renting your equipment is that Shoppa’s will ensure that we have a preventative maintenance plan in place so that your services are predictable so that you can plan around equipment absence. Our Certified Toyota Technicians will repair your unit in the case of normal wear and tear. Our dedicated rental team will help you replace your unit if needed, allowing you to continue to meet demands and take care of your customers.
Need The Newest Equipment?
RENTING: Renting allows you to have access to the latest technology and equipment without the upfront price of buying new. When you rent from Shoppa’s Material Handling, you get the latest equipment for maximum safety and efficiency.
BUYING: Purchasing your own unit ensures that you have your unit when you need it. If you’re looking into specialized equipment, buying may be your best option as you will never have to wait for equipment to become available.
Make The Right Choice
Each business has its own unique needs when it comes to acquiring its next forklift. Whether you need a new forklift to fill a long-term need or want a rental for a busy period, Shoppa’s has the quality equipment you can trust. We have a vast selection of new, used, and rental units available by day, week, month, or even longer. Let us help you find the perfect solution for all of your material handling needs.