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NEW LIVE Interactive Online OSHA Forklift Training

iLOAD online training

We now offer Live Online Interactive Instructor led Session Forklift Operator Training

 Leasing Forklifts vs Purchasing 

The decision to lease or purchase forklifts is not as cut and dry as many think. Getting over the "ownership hurdle" is difficult for some, but the bottom line is you pay for the equipment, the wear and tear and the abuse either way you go. The decision to lease vs buy is not really one of what it will cost in outlay of cash, but rather the impact of the company from a complete financial perspective.

There are companies that are better off purchasing equipment. These are usually light-duty operations where a forklift's useful life can double the average, maybe even triple. But for most customers the decision boils down to financial structure of the company, cash flow and capital availability. Some of the financial advantages include:

  • No cash outlay up front - Leasing usually requires no deposits or down payment, preserving capital for other projects. This is magnified with paying cash for equipment in entirety at purchase time.
  • Improved cash flow - Monthly payments for leasing are usually lower than purchase payments.
  • Leasing is an expense - In a fair market lease, the entire payment is tax deductible as a business expense. No depreciation and amortization to deal with.

Some of the other benefits can include:

  • Improved budgeting - With leasing you can include maintenance as part of the monthly payment. This all but eliminates surprise expenses for breakdowns.
  • Benefits from the dealer - Often times leasing from a dealership includes benefits like reductions for rentals when needed, preferred status for repairs and service and even substitute equipment when being serviced or repaired.
  • Equipment Absolensence - If you use specialized equipment, getting rid of it at the end of the useful life can be very difficult. With leasing you simple turn it back in to the dealer.

The decision to lease or purchase should be made with the assistance of someone with experience not only with equipment but also from financial perspectives. PMT Forklift has professionals that have helped hundreds of companies make the choice. 

Contact Us to speak with someone about leasing or purchasing a new or used forklift the next time you acquire equipment. We would appreciate the opportunity to earn your trust, and your business!

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This Month's Feature

Manual Pallet Jack Safety Tips and Training for Operators

Free Articles, Tips and Resources

Enjoy our FREE articles page that offers great resources for operator training, equipment advice, and efficiency for your operations.

Your Complete Material Handling Company

PMT Forklift Corp.
275 Great East Neck Rd.
West Babylon, NY 11704
631-661-1199 Fax

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