Just like most heavy pieces of industrial machinery, forklifts are quite expensive. For many companies, purchases of forklifts and other equipment represent significant percentages of their annual budgets. Since company administrators are always looking to reduce annual costs, the concept of opting for a forklift rental in Sydney (instead of purchase) is becoming increasingly popular.
Modern-day material handling equipment such as forklifts are incredibly complicated machines. Adding them to your inventory is a huge decision. Can leasing help companies cut costs? Essentially, that’s the point of leasing/renting.
Let’s assess how buying a forklift for sale near me is different to renting one:
1. Purchasing a Forklift:
In some cases, buying a forklift for sale near me makes more sense than renting one. For instance, when company administrators want their forklifts to be used for multiple hours, every day of the week, and for prolonged periods, leasing/renting doesn’t make financial sense. In such situations, purchasing second-hand machines makes more sense.
Some other cases where opting for forklift rental Sydney doesn’t make financial sense include –
- The nature of work doesn’t require constant upgrades. If the forklift you’re using now can serve your company for ten to fifteen years without needing important upgrades, buying a new forklift is the logical decision.
- When companies have too many cash reserves on their hands, adding an asset (as capital equipment) to their books makes financial sense.
- If lenders are offering reasonable lines of credit, permanently purchasing a forklift for sale near me makes long-term financial sense.
These are some situations where companies benefit from permanent purchases of forklifts. However, different companies have different policies regarding capital equipment investments.
2. Renting a Forklift:
Getting a forklift rental in Sydney is ideal for obtaining short-term objectives. If your warehouse needs a forklift only for a few weeks or months, renting is the better decision. However, renting a forklift can easily become more expensive than purchasing a forklift. If the machine sits idle for long periods, additional rentals fees, such as monthly costs of maintenance, may start piling up.
Some cases where not buying a forklift for sale near me and opting for rentals makes sense, include –
- Rush periods when warehouses experience volume increases. Temporary demands for expanding a company’s existing fleet of forklifts can be cost-effectively addressed by getting forklift rental Sydney. For most companies, the Christmas rush (September to December) is the period where renting forklifts increase their flexibilities.
- Let’s say you’re paying $500 per month to rent a forklift that costs around $21k. Companies can acquire such expensive machines without high upfront costs. More importantly, they can balance the actual use of the equipment with the costs. On the other hand, permanent purchases always come with some question marks regarding the machine’s long-term viability.
- Introducing these machines to the labour force for fixed periods also improve staff efficiency. As long as a company gets a new and high-quality forklift rental in Sydney, it can expect the machine to operate at peak efficiency.
Buying a forklift for sale near me or renting one? As you can see, both strategies are helpful in certain situations. Companies must remain technologically competitive in their marketplaces and always look to increase the performance levels of their workforces, be it via renting or purchasing.