When you realize you need a forklift, the question will come up: should you lease or buy
? Owning is great, but there are a lot of perks to leasing a forklift. Let’s look at the hidden advantages:
- You can turn in your forklift at the end of the lease instead of hanging on to a piece of aging equipment. Trying to sell a 5-year-old forklift can be challenging, and you have more important things to worry about while running your business. With leasing, you can simply return the forklift to the lender at lease end and move on. Let the lender sell your used forklift for you!
- You get to keep your cash. Forklift lease payments are often lower than loan payments.
- You get to keep your options open. Let’s say in a few years you need a different lift capacity or your warehouse dimensions change. When you lease a forklift, all you do is turn it back in and choose a new one.
- You get the latest state-of-the-art forklift model. Who wouldn’t want the latest technology and bells and whistles on a forklift?
- Benefit from off balance sheet treatment. Operating lease accounting for the lessee typically allows the expense to be deducted in the income statement (as paid) but does not place the obligation (i.e. monthly payments) or the asset on the balance sheet. Your tax advisor can show you the financial impact of this benefit.
- You can keep your bank lines open. Working capital lines of credit are critical to growing companies. Choosing to lease forklifts and commercial equipment allows you to use these valuable bank lines to further invest in your business.
- Payment streams that match business cycles. Many lenders offer irregular payment schedules, like quarterly payments, which can allow a business to match revenue and lease payment cycles.
When the lease vs. buy question comes up, make sure you take these things into consideration before you make your decision. For additional information, contact your local Toyota forklift dealer
or local Toyota Commercial Finance
For pricing, parts & more, click here to find a dealer near you.