The Benefit of Renting Forklifts Over Buying

The age-old discussion of renting versus buying is one that will likely never end. Every day, business owners are faced with decisions that could impact the future of their staff and organisation as a whole.

Forklifts, like many other pieces of equipment are essential to the daily operation of most businesses, particularly those in the warehousing and logistics industry. Forklifts, like many other pieces of equipment can also be expensive.

In this article we’ll take a dive deep into the pros and cons of buying versus renting a forklift. We’ll also point you in the right direction for world-class, industry-leading forklift brands, whether you make the decision to rent or purchase them outright.

Should I Rent or Buy a Forklift?

Cost Considerations

The primary factor when deciding between renting and buying a forklift is price. Renting a forklift means:

1. Lower upfront costs due to avoiding the significant initial investment when buying a forklift. Every organisation is different, but typically you can rent a forklift anywhere from 1 day to 36 months.
2. Predictable rental rates since you know how long you’ll rent the forklift for and rental rates are fixed, budgeting is significantly easier.
3. Little to no spend on maintenance as a result of the forklift provider typically handling this. Many businesses have in-house workshop departments that service their rentals.

On the other hand, choosing to buy a forklift means that you can expect:

1. Higher upfront costs as expected with purchasing new equipment. The initial purchase amount may impact your cashflow, especially if you need financing.
2. Fixed costs once the forklift is purchased. Without considering maintenance, operational, or resale costs you can easily determine the fixed cost.
3. Hidden costs in the form of maintenance, repairs, insurance, storage, and general operation should be considered.

Technological Considerations

The forklift as we know it today has evolved drastically over the past hundred years. Dating back to 1917, this essential vehicle has developed into a variety of forms to serve many different industries and applications.

When you rent a forklift, you have the option to make use of newer models with more advanced capabilities. Whereas, buying one means being limited to the features of that model unless you choose to sell it and buy a newer version.

For instance, forklift technology has recently seen the introduction of automated forklifts that use guidance systems to navigate warehouses and manage loads. Newer models are also environmentally friendly, use energy efficient batteries, and include better safety features.

Flexibility and Scalability Considerations

When you rent a forklift, you get higher flexibility and better scalability. This is often seen as a primary consideration since it is the main benefit of renting. Renting means you can easily adjust your equipment along with your needs.

If you rented a forklift to move your stock around, but realise that you underestimated the scope of work, it is relatively simple to rent another. The same applies to seasonal demands and general workload.

For project-based businesses renting is ideal because you can adjust the type of forklift based on the job requirements. For example, gas forklifts may be prohibited on a construction site, with rentals you can easily swop for an electric model.

As your business and its revenue fluctuates, renting allows you to easily adapt your fleet of forklifts by renting more or fewer units.

In a worst-case scenario, you do not want to have to store and manage a dozen forklifts after demand falls by 50%. Rentals allow you to cut costs and introduce more equipment as needed.

Risk Management and Compliance Considerations

Safety, risk management, and compliance are all factors that need to be considered when investing in a forklift. From a rental perspective, risk management means there is a lower upfront cost which improves cash flow for the business.

The short-term commitment of a rental alongside not having to maintain the equipment also means that there is often much less risk. In terms of compliance, there are three primary considerations: Operator certification, damage waivers, and insurance. In each of these cases, the impact of staff injury and equipment damage need to be taken into account.

From a buyer’s perspective, you get greater control when you own the forklift which allows you to decide maintenance schedules. You can also consider the resale value of your vehicle depending on the make and its condition.

This is a double-edged sword though, since you will be responsible for maintaining the forklift and ensuring that the operators are certified to drive one.

Service Quality Considerations

There are a few factors to consider in terms of service quality when it comes to renting versus buying a forklift:

Renting:

1. Availability

Does the company you’re renting from have a wide enough selection of forklifts to match the jobs you’ll be fulfilling?

2. Transportation
   1. Does the rental company offer delivery services, and if so, what is the turnaround time?
   2. Are there any additional fees associated with having the forklifts delivered?
3. Maintenance and repairs
   1. What is the rental company’s reputation when it comes to maintaining their forklifts?
   2. Do they carry sufficient spare parts to repair any damaged forklifts?
   3. Is their service response time appropriate?
4. Customer service
   1. Does the supplier offer reliable and friendly customer support services?
5. Warranty
   1. Does the forklift come with a warranty? What is and isn’t included?
   2. Is an extended warranty available?
   3. Do they have a service department on hand in case you are unable to repair the forklift yourself?
6. Parts availability
   1. Are parts for your forklift readily available?
   2. Do you have all the necessary equipment needed to conduct maintenance and repairs?
7. Health and Safety
   1. Do you have the necessary signage and safety protocols in place for a forklift to operate?

Total Cost of Ownership

There is a tipping point where buying a forklift becomes more financially feasible. If you plan on using your forklift daily or near daily, then buying one becomes cheaper in the long run. As it goes with any rental, you can expect to pay more with higher usage.

Whereas the odd container that needs to be offloaded calls for renting to avoid the costs associated with maintaining and storing a forklift.

It is up to you to consider your requirements and do some calculations to determine what would best for your business.

Where to Rent Forklifts in South Africa

Goscor Lift Trucks provides short-term forklift rentals to provide you with the flexibility you need to execute any project successfully. Complemented by competitive rental rate and excellent aftersales service, Goscor Lift Trucks is a cut above the rest, further proven by our 90% client retention rate.

We have a wide range of models including the BENDI Artic, Crown Lift Trucks, and Bobcat forklifts to suit a plethora of applications. Whether you’re looking for a reliable lift truck or top-of-the-line forklift trucks, we have a rental solution for you.