What Is The Difference Between Leasing & Hiring A Forklift?

When it comes to the day that your business requires a forklift, but purchasing isn’t quite on the cards yet, you’re left with two pretty flexible options: leasing or hiring. You’ll often find these terms being used mutually, but they each serve a different purpose which depends on what your/ your business’s needs are. Understanding the difference between the two can help you to make the right decision for your operations. 

What is Leasing a Forklift?

Leasing a forklift is a great choice for businesses that are looking for something long-term without having to pay the upfront cost. When you agree to lease a forklift, you get access to the modern equipment, equipped with the latest technology, and will usually have the option to upgrade as the newer models become available. This allows for businesses to keep up with the industry as it changes while also being able to manage the monthly payments. 

Another benefit to leasing is that your agreement may outline that maintenance and repairing services are included. This makes it slightly easier to manage the upkeep. It is important to bare in mind that, like anything, leasing costs can add up and at the end of the agreement, the equipment will not be yours.

What is Hiring a Forklift?

Hiring a forklift is more for those short-term projects/ seasonal demands (such as busier peaks like Christmas and Black Friday). Hiring allows you to keep up with the demand without having to commit to the long-term agreements. Hiring is also beneficial for companies who are unsure about having a long-term forklift commitment as they may not need it if their workloads vary. This offers the flexibility for you to increase or reduce your fleet as required. 

Different from leasing, hiring allows for quick and temporary access to the materials handling equipment without any long-term financial commitments, meaning you can get a forklift as and when you need it, and then return it when it is no longer required. (as long as this is stated in your contract). The only downside to hiring is that if you are doing this repeatedly, it can actually become more expensive than if you were to purchase the forklift outright, or take out a lease agreement. 

But Which Is Right For You?

Deciding between leasing and hiring really just depends on the business’s needs. If you predict that you are going to need a forklift for a long time, leasing is more likely to be the right choice for you. However, if you see your needs as more of a short-term thing, or something slightly more unpredictable, then hiring would offer you the flexibility you require. 

Overall, it comes down to looking into your businesses needs, your financial flexibility and what you imagine your companies future is going to look like. Whether you lease or hire, both options provide efficient ways to meet your material handling needs without the commitment of a full purchase.