Off the top of your head, renting may seem like the most practical solution when your business is in need of a forklift. Going this route when you occasionally need a forklift truck to do heavy lifting in your facility means benefiting from a great deal of flexibility and lower upfront cost.
But as your operations grow and your reliance on this machinery increases, renting may become more of a recurring expense than a sensible short-term fix. At some point, the convenience of renting can give way to inefficiencies and rising costs. That’s the time when it’s worth asking: should you invest in your own forklift truck?
To help you make that decision, here are some clear signs that indicate it might be the right time to make the leap from renting to owning:
You’re Using a Forklift Frequently or Daily
Frequent use is one of the strongest signals that it would be more cost-effective to own your own unit. If your forklift usage has gone from occasional jobs to daily tasks, you’re likely paying rental fees more often than you should. Once the equipment becomes essential to your day-to-day operations, you want to own it so that it’s always available when needed.
Your Rental Costs Are Adding Up
Have a look at how much you’ve been spending on forklift hire over the past few months or years. This entails calculating the total spend on rentals, then comparing it to the cost of a suitable forklift, including a refresher course for the operator, as well as the maintenance and any other related expenses for the forklift. If your ongoing rental fees are starting to rival the cost of buying or financing a forklift, it’s a good indicator that ownership could save you money in the long run.
Your Business Has Consistent or Growing Demand
When your workload is steady or increasing and a forklift is part of your regular workflow, it makes sense to bring that resource in-house. Owning a forklift allows you to meet growing demand without scrambling to secure rental equipment or adjusting to another company’s schedule and availability. It’s a solid step towards greater independence and operational efficiency.
You’re Experiencing Delays Due to Rental Availability
Forklift hire companies often work on a first-come, first-served basis. This means that during busy periods, there’s always a chance that you’ll find yourself waiting longer than you’d like to get the equipment you need. If you’re regularly delayed or having to rearrange tasks because a forklift isn’t available when you need it, that’s a red flag. In contrast, owning a forklift means that you can make sure that your business can access the equipment any time, no matter how slow or busy the season may be for equipment rental companies.
You Want Greater Control Over Equipment and Usage
When you own a forklift, you decide how it’s used, maintained, and stored. You can invest in the specific model that best suits your work environment, be it a tight warehouse space or a rugged outdoor work site.
This level of control also means you’re not restricted by hire terms or limitations. For example, if you want to tailor the equipment to do specific tasks, you can do so without needing another company’s permission. Plus, having your own forklift truck allows for consistent performance and handling, which can improve safety and productivity in your facility.
You Can Afford the Upfront or Financing Costs
While buying a forklift is a significant investment, it doesn’t have to be a financial burden. If you’re not ready to shoulder the full cost of the equipment right now, you can breathe easy. Many businesses opt for financing to spread out the cost over time and make their payments more manageable.
Is your cash flow stable, and is your business in a good financial position? Now might be the perfect time to invest. To be sure, talk to your accountant or finance provider about the best way to structure the purchase.
You Want to Build Assets and Equity in the Business
A forklift truck is a tangible asset that can be used as equity when applying for future funding or loans. Additionally, equipment ownership opens up tax benefits such as depreciation claims, which can help your business offset maintenance costs over time. These financial advantages, while often overlooked, can play a big role in long-term business planning.
You’re Tired of the Hassle of Rentals
Lastly, managing forklift hire can be a bit of a juggle. This task involves coordinating pick-ups and drop-offs, negotiating rates, dealing with paperwork, and scheduling around availability. If renting is becoming more of a hassle than a help, then ownership might provide a welcome relief. Having your own forklift on site means no more waiting and having one less thing to worry about when running your operations.
Frequently Asked Questions (FAQs)
What type of forklift is best for a small warehouse?
Electric forklifts are ideal for small indoor spaces due to their compact size, zero emissions, and quiet operation. Consider lift capacity and turning radius when choosing.
How often does a forklift need maintenance?
Forklifts typically need preventive maintenance every 200-250 hours of operation. This includes checking fluids, brakes, tires, and safety features.
Can I claim a tax deduction for buying a forklift?
Yes. Forklifts are considered capital equipment and may be eligible for tax deductions through depreciation or Section 179 (if applicable in your region). Consult a tax advisor for details.
Final Thoughts
Your choice of whether to buy a forklift hinges on usage, costs, and long-term business goals. If you’ve ticked off several of the signs listed above, it might be time to stop renting and start owning. With the right forklift truck provider and a bit of planning, you’ll be able to smoothen the process of owning a forklift that truly supports your growing operation.
Buying a forklift isn’t just about saving money—it’s about investing in your infrastructure, boosting productivity, and laying the groundwork for future expansion. If you’re ready to take that step, now is the time to assess your needs, explore financing options, and partner with a reliable provider who understands your business goals.
Want to see how forklifts can improve manufacturing workflows? Explore how stacker forklifts play a key role in lean manufacturing and discover how they help optimise space, reduce waste, and support agile production systems.
