Forklift Contract Hire vs. Forklift Lease Purchase: Which is Best For Your Business?

Atlas Stock

Professional equipment such as forklift trucks is a non-negligible part of business activities in the warehousing, construction, and industrial sectors. Yet, businesses have more than one strategy to secure the equipment they require without committing to an immediate purchase:

  • hiring
  • leasing

Hiring equipment, such as a forklift truck, is a flexible rental contract, which can be set for the duration of a project, for example. When the hiring contract is over, the forklift is to be returned.

On the other end, leasing offers the business different options, such as the possibility to purchase forklift trucks at the end of their lease or to renew the lease on the equipment.

Understandably, a business may want to compare forklift hire vs forklift lease purchase. Here, at atlasforklift, we help you understand the pros and cons.

    Forklift Hire

    If you decide to hire forklifts, atlasforklift are the owner of the truck and they hire it to you for anything more than a 2 year period. atlasforklift would cover the maintenance and repair costs for this period. At the end of the hire contract the truck comes back to us and we can redo another hire contract.

    We also offer a short term hire that can last for up to 12 months. Once again, atlasforklift covers the maintenance and it can also be done on monthly contracts if you are uncertain about a project length.

    Advantages Of Hiring A Forklift

    • You are not responsible for forklift maintenance
    • You can return the truck and not pay any more once the rental period is over
    • It is cost-effective compared to buying equipment
    • You receive excellent support from our friendly team
    • Ideal for short-term requirements

    Disadvantages Of Hiring A Forklift

    • You do not own the truck
    • There might be usage limits imposed
    • You are reliant on a third-party to carry out repairs

    Forklift Lease Purchase

    On the other hand, if you decide to lease forklift trucks, the agreement is that the truck will be purchased over the course of 5 years with VAT up front.

    The maintenance of the leased forklift truck will be down to the customer, including accepting responsibility for incurring repair costs.

    At the end of the 5 year forklift lease, providing that the buyer has made all the payments, the truck will belong to the customer.

    Advantages of Leasing a Forklift

    • You can get your hands on the latest models of forklifts
    • Leasing is often more affordable than buying outright
    • You can spread the cost of the forklift over an agreed term

    Disadvantages of Leasing a Forklift

    • If you don't make your payments on time, you could lose the use of the forklift
    • The monthly payments can be higher than if you were to buy outright

    Forklift Contract Hire vs Forklift Lease Purchase

    Whether you opt for a forklift contract hire or a forklift lease purchase will depend on different criteria:

    You should focus on forklift hire if:

    • You have short-term needs
    • You don't need to own the equipment
    • You don't have the budget to pay lease fees or maintenance

    A forklift lease purchase is more suitable if:

    • You have long-term needs
    • You need to own the equipment but can't afford to purchase forklifts outright
    • You want to boost your financial health with lease purchase tax reductions

    Regardless of your requirements, whether you decide to go with a forklift hire or to lease forklift trucks, you want a partner you can trust to look after the equipment and advise you. atlasforklift is a specialist provider in both lease and hire contracts, helping you make the most of forklift trucks when you need them.