Considerations Before You Sign A Forklift Lease
If your warehouse operations need a new forklift, it might be more cost effective to look at a forklift lease instead of an outright purchase. A new Class V forklift can easily set you back tens of thousands of dollars (or more) and can create a real cash flow problem. The big advantage to leasing a forklift is that you initial cash outlay is much lower and your cash on-hand isn’t impacted nearly as much.
Caterpillar makes some of the more popular forklifts and they offer everything from small hand pallets to entry-level Class 1 forklifts all the way up to the huge Class V forklifts capable of lifting up to 36,000 pounds. While you have the ability to rent these lifts, your monthly rent might be higher than a lease payment. Plus, with a forklift lease, you are can actually own the equipment at the end of the lease. Most leasing companies offer several different types of leases including trade-in, fair market value, and one dollar buyout.
In a trade-in lease, at the end of your lease period (36-months, 48-months, or 60 months), you would turn in your forklift. This would be the least expensive lease but at the end of the lease you have no equipment. The second option is the fair market value lease. With this type of financing, your payment would be a little bit higher than the trade-in lease. But, at the end of the lease period, you have the option to purchase the forklift at its current market value. For example, let’s say you lease a Class IV Caterpillar LP-Powered Forklift and your lease payment is $600 month on a five-year lease. At the end of the five years, the leasing company puts a value on your five year-old used forklift. Let’s say it is now worth $25,000. You now have the option to purchase the forklift outright for $25,000. The third option is the $1 buyout lease. In this lease, your monthly payment will be the highest, but at the end of your lease period, you can own the forklift for $1.00.
|
So, if you are in the market for a forklift, or any other piece of industrial equipment, you should consider your options with financing. A forklift lease might make good sense for you financially, especially if you need to retain your capital to use for other expenses, or if you want some flexibility with your monthly expenses. |
Wyoming, Forest Hill, North Tonawanda, Beverly Hills, Lewisburg, Garden City, Prospect Heights, Bristol, Champlin, North Carolina, Bellwood, Bellevue, Baton Rouge, Rowlett, Atascadero, Marshall, Wooster, New Braunfels, Kings Mountain, Marietta, Kentwood, Grosse Pointe Park, Middlesex, Ozark, Kansas, Corinth, Fostoria, Marquette, Grandview, Montana, Twinsburg, Tracy, Jackson, Salem, Modesto, Seaside, College Park, Lower Burrell, Lawrenceburg, Ohio, Willmar, Bardstown, Victorville, Auburn, Rochester, Laconia, Oconomowoc, Waterbury, Ogdensburg, Washington, Hallandale Beach, Gardner, Arkansas, Virginia Beach, Reynoldsburg, Mansfield, Painesville, Downers Grove, Stephenville, Lehi, Wisconsin, West Chicago, Muncie, Mitchell, Girard, Denison, Fort Worth, Glen Cove, Rahway, Maryland Heights, Royal Oak, Lansing, Silver City, Ridgefield, Brecksville, Bainbridge Island, Bethany, New Hampshire, West Memphis, Coalinga, Oregon, Warwick, Stow, Knoxville, South Portland, Elizabethtown, Pembroke Pines, Point Pleasant, West Haven
Cantilever Racking - Some General InformationBy James Wittering Overview on Bottle Labeling MachineBy Richard Alone The Different Types of Excavator BucketsBy Luke Hynek |