Are you in need of forklift truck and you don’t know whether you need to hire a forklift truck rather than purchase it? Deciding the procurement method of a forklift truck can have a lot of long term ramifications on your capital budget, your return on investment, and even your operational efficiency. Your concern about making the right decision is well warranted. There are times where renting a forklift truck makes great sense for an organisation, but there are other situations where renting a forklift truck may not be the best option. This list of pros and cons for renting forklift trucks might help you navigate the complex decision:
Pros of Renting a Forklift Truck
FLEXIBILITY
Renting a forklift truck gives you tremendous flexibility with your operations. If your organization is experiencing rapid growth or a decline in business, you can quickly add or remove forklift truck rentals from your fleet. This flexibility allows you to scale your operations and give you the ability to make adjustments. A forklift truck rental is also easily exchangeable if you need a different type of forklift truck at any given point in time.
MAINTENANCE RESPONSIBILITIES
With most forklift truck rental suppliers, routine maintenance is included. This can be a fairly large expense comparatively to a forklift truck you own. Not having to worry about the routine maintenance and wearing relieves your organization of managing that responsibility. However, as the hirer, you may still be responsible for paying for any damage done to the forklift truck while it’s rented by your organisation.
NO LARGE UPFRONT COSTS
Renting a forklift truck doesn’t require a down payment, a loan, or to be paid in full like a forklift truck purchase requires. It take the burden of owning the forklift truck off you and onto the supplier. A forklift truck rental is usually a flat weekly or monthly rate depending on how long your rental contract is for. The flat rate makes it easy to budget, especially when you don’t have the unexpected repairs and downtime associated with ownership.
Cons of Renting a Forklift Truck
LOCATION
The location of your organisation should be a factor when you decide to rent a forklift truck. If you located far from a metropolitan area or do not have a rental provider near you, you may incur large transportation fees for delivering and picking up the forklift truck. You may also pay more for your weekly or monthly fee to offset the time it takes to travel and perform maintenance on the forklift truck. Therefore, it may be more beneficial to purchase your forklift truck if your location is a challenge.
TYPE OF FORKLIFT TRUCK
A supplier’s forklift truck rental fleet is usually made up of the most common types of forklift trucks. If you have a specialized need, the rental company may not have the type of forklift truck that you need. In this case you should purchase the forklift truck customized to your company’s needs.
HIGH MONTHLY COST
A forklift rental will usually have a much high monthly cost comparatively to purchasing or leasing a forklift. The forklift company charges more for rental because they incur the cost of owning the forklift, including the repairs and depreciation. Because the forklift company has to account for these expenses, the monthly price of renting a forklift will be higher.
Taken alone, any one of these pros or cons could be the deciding factor in your decision. But I recommend taking each of these into account and fully understanding each to come to a fully-considered decision. That means, for example, weighting the relative cost with your operational need or understanding that the cost of your location might outweigh potential maintenance savings (or vice versa). Whatever you decide, make sure that you have a dedicated forklift partner like Fleet Rentals and understand that being a good forklift rental partner will make your experience with renting a forklift all the more beneficial.
