It’s All Here – Know Your Forklift Rental Options, Advantages & Considerations
As a general rule, it’s a bad idea to over-leverage your business with assets that quickly depreciate in value or that you will have to spend money maintaining even after they outlive their use. This is especially true when you’re assembling your forklift fleet. While renting forklifts or other material handling equipment can be more cost-effective than buying, there are still many variables to consider when choosing between long-term or short-term rental agreements.
Rental terms are based on the type of use, expected hours used and often include the associated maintenance costs. Long-term equipment rentals offer the peace of mind and stability of months or years-long agreements whereas short-term equipment rentals allow you to keep long-term costs down and preserve space in your facility. When you acquire a forklift or any other material handling vehicle, it’s important to consider which option is right for your facility’s needs. Some things to think about include:
- Budget – It always comes down to money and forklift acquisition is no exception. Take a detailed look at your resources and whether it’s worth spending money on protracted fuel, operating, and maintenance costs for a forklift you aren’t using full-time.
- Frequency of Use – Do a granular calculation of how much you’re going to use these vehicles. Do you need them for a quick or seasonal project or as part of a longer-term fleet expansion?
- Right-Sizing Your Fleet – How many forklifts do you actually need to effectively maintain daily operations? Do sporadic upticks in production and fulfillment needs warrant making long-term investments in forklift acquisition?
- Facility Space – Your facility’s square footage is also a factor in determining whether to choose long-term or short-term forklift rentals. You need to make sure you have adequate space to safely house these vehicles when they’re not being used.
- Average Daily Workflow – Think about your daily operations and what types of forklifts are best equipped to help you perform core tasks specific to your production needs. There are many different types of forklifts out there, and it’s important that you have everything you need…and nothing you don’t.
While rental costs vary greatly, depending on the dealer you choose, the average cost of a forklift rental is between $1,000 and $5,000 per month and between $225 and $800 per day.
Benefits of Short-Term Forklift Rentals
- Quick Additions to Your Material Handling Fleet – It’s great to have increased sales demands, but it’s not so great to have to unexpectedly spend thousands of dollars in infrastructure to satisfy them. Short-term rentals can be ideal when you need extra vehicles during peak picking seasons, like the holidays. They can also help when you have unexpected surges in fulfillment needs for one-time conditions…like a pandemic.
- Keep Long-Term Costs Down – When you rent short-term, you can avoid protracted costs of forklift upkeep, like maintenance, fuel, and insurance. You can “use them and lose them” when your production needs to stabilize or slow down after peak season.
- Keep Space in Your Facility Free – In addition to keeping your cashflow free, short-term rentals also help free up valuable square footage in the interior and exterior of your warehouse. Space is always at a premium, and if you don’t have to house a fleet of forklifts that you don’t use that often, you can allocate space for other purposes.
- They Can Be Used as a “Band-Aid” – Unfortunately, forklift repair shops don’t offer “loaner vehicles,” but short-term rentals can fill the gap if you have a vehicle being repaired.
- The Right Tool for the Right Time – If you need a specialty vehicle for a limited-use task, short-term rentals allow you to get exactly what you need when you need it without having to maintain and store it for the sporadic occasions where you’ll need it again.
Benefits of Long-Term Forklift Rentals
Although short-term rentals can give you the versatility and flexibility you’re looking for, long-term rentals offer a variety of benefits, as well:
- Better than Buying – A long-term rental is a fraction of the purchase price of a new forklift. The average internal combustion (IC) or electric forklift can be a $20,000 to $50,000 capital expense that can be spent elsewhere if not applied to a vehicle purchase.
- Manage Equipment Costs – As with a car lease, most long-term rental agreement rates are calculated based on the expected amount of use and conditions of use. Rental agreements can put the maintenance responsibility on the dealer and the costs for scheduled repairs are included in the agreement which ensures the vehicle is properly maintained. This helps spread out the costs at a fixed rate over the term of the agreement and minimize surprise expenditures. In addition, you do not need to allocate facility space for parts, tools, and the infrastructure needed for in-house servicing and many long-term rental agreements even offer preferred pricing on supplemental parts.
- Get the Latest Vehicles and Upgrades – Buying a forklift represents a long-term commitment that includes obsolescence and depreciation expenses. Conversely, long-term rentals allow you to regularly modernize your vehicles or choose a different class.
- Tax Benefits – Many states treat equipment rentals as a tax-deductible operating expense. Check your individual state policy to take advantage of the financial opportunities in your state.
Like short-term agreements, long-term rentals also allow you to save space in your facility, maintain your cash reserves and keep your credit line free for other business expenditures.
Apex is Here to Find the Best Vehicle & Rental Plan for Your Business
When you’re choosing between which rental model is best for you, the team at Apex is ready to guide you through the process to make the most informed choice. We offer a full inventory of the latest models of electric and internal combustion forklifts, flexible rental agreements, comprehensive operator training, and full-service maintenance plans to give you peace of mind and assurance. Whether you’re looking for a new or used forklift for a few months or a few years, we’re ready to discuss your needs.
Grow your fleet and your business with confidence and let Apex partner with you to ensure you have exactly what you need…for as long as you need it. Contact us today to learn about our inventory, rental agreement options, fleet maintenance, training, and more.