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Should I buy or hire my fork lift truck

 

Should I buy or hire my fork lift trucks?

This question is something that many companies wrestle with. The waters have become further muddied by very cheap forklifts available for sale online that look too good to be true.

Let us first of all set out the benefits of both hire and purchase:

Hiring:

 Positives

 Negatives

 No major up front capital investment

 You do not own the truck so it cannot sit on your asset register

 Fixed monthly cost with no sudden repair or  maintenance bills

 The truck does not technically belong to you so you cannot make modifications if required

 Regular maintenance and servicing by hiring company, within agreement cost

 

 Annual LOLER conducted by hiring company, and any remedial work required

 

 Machines can be upgraded or swapped if required

 

 Invoices can be offset against tax liability

 

 

Purchasing:

 Positives

 Negatives

 You own the asset so it features on your balance sheet

 Whilst the truck will sit on your asset register, it will depreciate over time

 You can quickly off-set the large one-off payment against a tax liability

 Initial up front cost is significant

 You are free to do exactly what you want with the truck, when you want to do it!

 You are responsible for all ongoing servicing and maintenance

 

 The truck may present unexpected and large maintenance costs

As you can see the decision of hiring vs purchasing can be relatively complex, and the reality is that a lot of times it comes down to personal preference.

To simplify things down, and provide some guidance, our recommendation would be that if you are looking for convenience and are a medium to heavy user of forklift trucks, hiring is likely to be the better option for you.

If however, you use your truck infrequently and are looking to keep life time running costs to an absolute minimum, don’t mind lumpy cash flow, and some potential inconvenience along the way, purchasing represents the better route forward.

The good thing is, at Bendigo Mitchell we can help you with both.

Click here for information on fork lift truck hire.

Click here for information on fork lift truck purchase.

 

Need more information? Contact us today

Not sure what type of forklift is right for you? Get in touch and we can help.

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