Equipment Purchasing Options
Buy, Lease or Rent? How to Know Which Equipment Purchasing Option is Best for Your Business.
At Shoppa’s, our goal is to deliver tailored solutions that will help your business grow and thrive. One way we do that is to help you secure the material handling equipment you need in the most economically practical manner.
That’s why we are pleased to offer a full line of financing and lease options, whether you need one machine or an entire fleet.
Regardless of whether you’re looking to own or lease, we don’t want the price of new equipment to be a barrier to your success. Our industry-leading lease options are the solution, providing the flexibility you need while reducing the total costs of ownership.
Buying and leasing forklifts both have their unique advantages. So, whether you are looking to integrate new equipment into your existing fleet, secure equipment for a short-term need, or are interested in a full-maintenance, long-term lease, we’ll help you find the best financing plan to keep you moving!
Sometimes, renting is the best solution, and we offer a wide array of rental equipment to help you get through a busy season or try out a piece of equipment before buying.
Advantages of Buying a Forklift
Higher overall return on investment
Purchasing new equipment gives you the opportunity to create equity and resell the forklift once it’s served its purpose. This can deliver liquidity and provide the means to reinvest in your fleet as you replace older units or require newer features or technologies.
Also, as long as your equipment is well maintained, the overall return on investment for a purchased forklift is higher than that of a long-term rental, since the monthly payment on a financed purchase is generally less than a monthly rental fee.
Ability to customize equipment to your needs
Owning your equipment means you can make more modifications, including customizing factory-installed options tailored to your specific needs or use cases.
Section 179 tax deduction
Purchasing a forklift often yields advantageous tax deductions. Thanks to the Section 179 tax deduction, the full purchase price of new industrial equipment (up to $1 million) can be deducted during the tax year of the purchase.
This deduction applies to other industrial or warehousing equipment as well, such as warehouse racking.
You’ll want to consult your tax advisor to make the best choice and ensure compliance, but this deduction can have a sizable tax savings impact over depreciating equipment over a number of years.
Rental and lease vehicles must be returned after a set period of time and returned in good condition as specified in the terms of the rental or lease contract. If you damage such equipment or put it through excessive wear and tear, you could be liable for repair costs. By owning, you have a choice when it comes to making minor repairs or fixing cosmetic damage.
Advantages of Leasing a Forklift
Predetermined replacement cycle
Leasing allows you to set the number of months or years of your lease term based on your unique situation and needs.
Shorter leases tend to work better for companies that have more fluid, high-cycle, and high-throughput applications, as these put more wear and tear on the forklifts and require equipment replacement more regularly.
Lower monthly costs
Leasing offers lower monthly payments than buying or renting, freeing up funds that you can reinvest in your business.
Latest models and features
By leasing and replacing your equipment on predetermined cycles, you’ll have more regular access to Shoppa’s full line of industry-leading equipment options, complete with the latest models and technologies in the material handling industry.
Similar to purchasing, these models can also be customized for your application.
When the terms of the lease are up, you can make adjustments as needed to increase or decrease your fleet size, change the product mix, modify the lease terms, and implement any other equipment modifications to meet the needs of your evolving business.
Advantages of Renting a Forklift
Get through seasonal demand spikes
Many businesses have cycles when demand peaks, and renting provides an economical way to temporarily supplement your fleet or replace an out-of-service unit just for the period of time when it’s needed.
No long-term commitments
Since rentals are usually paid month-to-month, you can return a rental unit and swap it out for a different one if your needs change. Many customers also choose to rent a forklift before making a final decision to buy or lease, so that they can test it out and make sure it addresses all their needs.
Shorter lead times
Ordering a new forklift can sometimes take a few days or weeks, depending on the customizations and availability of inventory. By contrast, we keep an ample stock of inventory on-hand for rentals, which means we can get you moving right away. Plus, we’ll deliver your rental unit right to your business.
Reduced maintenance costs
Planned maintenance is generally built into the rental contract, which means anytime your forklift is down due to normal wear and tear, we’ll send a trained technician out to your business to conduct the repair at no additional cost.
We’re Here to Help
The leasing and sales agents at Shoppa’s, along with our partners at Toyota Commercial Finance, are committed to helping you find the right solution for your business, your budget and your objectives.
Let’s define success on your terms. Contact your Shoppa’s representative today to discuss the various financing options available.
Contact your Shoppa’s representative today at 866-506-2200 to discuss.