If you have a business where you are moving products on a pallet. There is more than a fair chance might have a forklift to help you. Whether you already have a forklift or are looking at getting one, you might to buy a forklift.
How to buy a forklift
These days there are plenty of forklift makes and models on the market. When you go looking to buy a forklift, buyers will tend to focus more on the engine, transmission, mast, make, and model then they do on how to buy a forklift.
Once you narrow your decision down on what forklift you are going to buy. The next step is how to buy the forklift, and you have a few different choices.
Purchase a forklift outright
If you are lucky enough to have the capital sitting in your bank account, you can purchase it outright.
Rent to buy a forklift
This has become a very popular way to buy forklifts. You are able to rent the forklift over a fixed period of time, with either a zero payout or a small payout figure at the end of the term.
Usually, the business renting the forklift is still responsible for maintenance by either paying for it as they go or a preventative maintenance agreement, with the forklift dealer that they bought the forklift through.
Forklift lease finance
This type of arrangement is very similar to the rent-to-buy scheme, but it is purely a finance arrangement with either a finance lending business or the bank. The maintenance can be done by any reputable forklift or mechanical business.
Fully Maintained Operating Lease for forklifts
A different version of a rental agreement, but it is usually done directly through the finance company where the forklift dealer will bill the finance company every month.
The business that rents the forklift rings the forklift dealer directly to arrange maintenance issues when they arise.
Very similar to the FMOL arrangement above, The Business rents the forklift directly from a forklift dealer. The forklift business will invoice the business renting the forklift directly, and all maintenance requirements are done directly between the business renting the forklift and the forklift dealer.
If a business has a need or a requirement for a forklift. There are so many different ways that you can buy a forklift, and there certainly are different advantages and disadvantages to any way you want to do it.
The best thing to do with talk to your accountant first before making a decision on financing or leasing a forklift. Then talk to your local forklift dealer about what options they can provide you.
New or Used forklifts are also something worth considering for any business.
You can use any of the methods to buy a forklift even if it is new or used. But the older the forklift the more restricted with options you might face,
A final tip, if you do decide to purchase it outright with your own capital. Just make sure you discuss any warranty that might apply.