Could a Forklift Lease Be Your Secret Weapon?
by Tamara Crouse, on Jul 17, 2020 1:13:00 PM
As a business grows, they tend to purchase more and more equipment. We get it. There's a real sense of pride that comes with owning not just one forklift, but an entire fleet. Unfortunately, there's a downside to owning a lot of equipment, especially if you're in a competitive industry.
Businesses who lease their forklifts get the latest technology, preserve capital and minimize downtime. Leases give you the flexibility to add or remove equipment while your competition keeps paying for out-of-date equipment month after month.
Working smarter, faster, and out-performing the competition, that’s also something to be proud of! Maybe that's why eighty percent of businesses now lease equipment. Review our top 5 forklift lease options, or read on to learn when to lease vs. buy a forklift and four surprising things most people don’t know about forklift leases.
When to Lease Vs. Buy a Forklift
A forklift lease allows you to:
- Pay little to-no-cash upfront
- Keep a rotating stock of new forklifts in your fleet
- Enjoy lower monthly* payments (vs. a loan)
- Only pay for the hours you use the equipment
- Invest in growth opportunities instead of a depreciating asset
- Avoid unpredictable repair expenses
*You don’t even have to make payments every month, Southern States Toyotalift (SST) offers flexible lease plans to fit your business cycle.
Unsure whether to buy or lease your next forklift? Here are a few questions to ask:
- Can I maintain the forklift well enough to guarantee maximum trade-in value? - BUY
- Do I have a high-cycle/high-throughput application or operate in a highly-competitive industry? - LEASE
- Does my application require permanent modifications to the forklift? - BUY
- Is my future cash flow uncertain? - LEASE
- Do I have a heavy-duty application where the forklift will likely receive cosmetic damage? - BUY
- Could my business benefit from tax depreciation?** - LEASE
**Always consult an accountant or financial professional regarding your specific tax situation.
4 Things You May Not Know About Leasing a Forklift
#1 A lease can help you avoid paying for unexpected repair expenses. Many of our clients choose a forklift lease with maintenance. It’s one less thing for you to worry about, and it can increase the forklift’s residual value.
#2 We can offer flexible forklift lease agreements to help your company meet your specific needs and business goals. Here are a few of the ways we can customize your lease:
- Choose a contract lasting only 12 months, or up to 72 months
- When the term ends, you can end the lease, extend the lease, or even buy the forklift
- Make seasonal payments to match business income cycles or a one-pay lease
- Get a “lease line of credit” so you can obtain multiple pieces of equipment under one master lease
#3 Toyota forklifts retain their value - a massive advantage when leasing. When you lease a Toyota forklift from SST/Toyota Commercial Finance, you’ll enjoy the highest end-of-lease residuals in the industry. This means you can get a higher-quality forklift that can provide a greater value for your business for less money than you'd spend on a monthly payment. Get a higher-quality forklift that can provide a greater value for your business.
#4 Leased forklifts (by definition) are financially-optimized - they’re always within both their useful and economic lives. When leased forklift nears the end of its economic life for your application, you get to return it for a new one. If business has decreased, you’re no longer saddled with equipment you don’t need.
Popular Forklift Lease Options in Georgia and FloridaOur most popular forklift lease agreement is the Operating Lease. Many customers are pleasantly surprised how much forklift they can get with this financing option. It can give your business a significant competitive advantage. With an operating lease:
- You only pay for the hours you use the equipment
- We can customize the lease for high vs. low-hour applications
- You can extend the lease at the end of the term, or return the equipment for something new
- We can include a maintenance plan
- Your lease payments may be tax-deductible (always consult a tax professional)
Here’s a PDF of our 5 most common financing options. We also have some leasing specials going on now through August 31, 2020. Lease a new Toyota forklift with no payments until 2021, or choose 0% interest for up to 12 months (class 1-3 only) when leasing or financing a new forklift.