Should I Rent or Buy Used Forklifts?

This can be a very complex question and there are obvious advantages and disadvantages of both options.

The most vital point is to determine what is right for you. We can give you some guidelines but every business is different as are the needs of the people running the business.

It is worth considering the following points.

Buying Second Hand Forklifts

• Using the forklift sparingly and therefore don't need a top of the range, late model unit.
• Service costs will be minimal due to low usage.
• Won't tie up a lot of capital by buying a used forklift.
• Own the asset.

However,

• What happens when the forklift lets you down when you do need it?
• Will a major repair cost you a fortune?
• Have you maintained the necessary records to satisfy the Occupational Health & Safety Act?
• Does the forklift meet minimum standards?
• Will a change in your business change your forklift needs so as to make your current equipment redundant?

These points need to be weighed up and traded against each other. For some businesses, it will make a lot of sense to buy a used forklift and any negatives will more than offset by the positives.

If you are going to use the forklift(s) on a daily basis and for several hours on any given day, it may make sense to consider the following points.

Renting Forklifts

• Your costs are fixed to a monthly rate. Budgets can be set in the knowledge that unexpected maintenance or replacement costs will not have be to considered.
  
  
• You don't have to cope with the difficulty and disruption of unexpected maintenance costs and down time.
  
  
• Capital is not tied up in equipment ownership and can be used to expand the business.
  
  
• Rental is a non balance sheet item that can be fully expensed straight away. Return on assets is not affected. (You should seek your own accounting advice before deciding on a financing strategy for equipment).
  
  
• Renting can often lead to a reduction in the size of your fleet. New equipment can produce productivity gains and reduced downtimes meaning fewer machines are required.
  
  
• Rental provides greater flexibility as you can add and remove machines from your fleet easily without the risk of significant capital losses.
  
  
• The business no longer has to concern itself with maintenance strategies and can use our expertise to assist with OH & S issues concerning the use of forklifts.

Unfortunately, there is not a standard answer or set of circumstances for deciding whether or not to rent or buy. It is a decision you need to weigh up and Waverley Forklifts will be able to assist you in that process.

If you would like any further information or technical specifications, please either give us a call on (03) 8540 4000 or contact us via email. Our staff are ready and waiting to assist you no matter how small the enquiry.

With head office in Melbourne and regional branches in Sydney and Brisbane we can supply Australia wide.

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