A forklift comes in handy during heavy-lifting projects. Are you torn between buying and renting a forklift? We are here to simplify your decision-making. Selecting the right procurement forklift approach can be overwhelming. You are probably considering an option that will have long-term and positive ramification on your capital budget, operation efficiency, and profits. Both buying and renting a forklift are advantageous for business but dependent on certain factors. Here are the merits and demerits of renting rather than buying:
There are various credible forklift rental options out there regarding machine variety and affordable costs. Flexibility is a good factor of consideration especially if your project is not long-term. You get to choose a plan that matches the nature of your job within the required time. You can also request for addition or removal of these rentals depending on your workload and budget. It is also possible to exchange if you need a different option.
Renting a forklift is less expensive than paying the entire amount at once during a purchase. This option is cost-effective especially when you are certain that your project is not long-term. You do not have to buy equipment that will only be used countable times. The payment plans are often flexible, predictable, and easy.
3. Pre-Determined Replacement Cycle
It is easier to manage the replacement cycle if you opt to rent rather than buying. You only pay for your usage period. The rental company often takes care of repairs and replacement. You also do not have to break the bank only for the equipment to be outdated a few years later especially for short-term projects.
It is important to consider if there any rental companies available near you. A far location from the company will increase your overall cost because of the transport fee. Most of these companies charge a high fee for delivering and picking of the equipment. The incremental costs might also result from the weekly or monthly time and transport fee incurred to come for performance maintenance. Consider closer companies to your location to save time and money.
2. Project Delays Will Cost You Extra
Sometimes projects can be unpredictable. You might experience losses and delays for reasons such as poor weather conditions, late delivery of materials or unavailability of your contractor. After signing the contract, most firms will not bend their terms because of these uncertainties. You may end up extending your contract period to complete your project at an extra cost.
3. Increased Interest Rates
The renting rates vary among companies. An increase in interest rate will raise the overall cost incurred. You will also end up paying for more for a long-term job than if you bought the equipment. That is why individuals are advised to consider the renting market rates and nature of the project to cut down the costs.