3 Reasons to Lease vs. Buy an Electric Forklift

by Agnes Cabrera on September 3, 2021
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Reasons to Lease vs. Buy an Electric Forklift

When you lease an electric forklift:

  • You get the exact equipment you need 
  • Your monthly payment is lower than a loan payment
  • You don't have to buy a replacement battery

Bonus: businesses in California can get paid to charge electric equipment.
Sound good? Let’s talk.

If you're unsure whether leasing an electric forklift is right for your business, read on for some important considerations.

Haven’t added an electric forklift to your fleet because of the battery replacement cost? Leasing an electric forklift makes that problem disappear. Here's why:

The forklift's original lead-acid forklift battery should last at least five years.*  Forklift leases are typically 3-5 years, which means you get to return the forklift before the forklift battery needs to be replaced.

* Five-year lifespan is based on a single-shift operation. If you have a multi-shift operation, you can still get a lease contract that ends before you have to buy a new battery.

Advantages to Leasing an Electric Forklift

We have a blog post that gives a detailed answer to this question, but in general:

  • If your usage is 1300+ hours/year, it makes financial sense to lease
  • A lease is also better if you want to keep more cash on hand

Monthly lease payments are almost always cheaper than a loan payment. Just for comparison, you can expect to pay approximately:

  • $375 – $500 per month to lease an electric forklift that sells for $25,000
  • $600 – $950 per month to lease an electric forklift that sells for $50,000

BUT (many people say), with a loan payment, you're paying for something you own. True, but is that the best use of your money? Some businesses prefer to invest in inventory expansion or new product development instead of a depreciating asset. 

Leasing also allows you to use the latest and greatest equipment. If you’re in a competitive industry where small advantages can help you land big contracts, leasing ensures your company isn’t using an old Pontiac to race the latest Ferrari. 

Also, as mentioned above, California will pay you to charge your electric forklift. Get money back every quarter and get off the fossil fuel price roller coaster. It's a win-win.

Lastly, there are some tax advantages to leasing a forklift. Consult your company’s financial advisor for more information.

Interesting stats about electric forklifts and forklift leases:

  • 75% of businesses lease some or all of their equipment
  • Electric forklifts out-sell internal combustion forklifts by almost 2-to-1
  • Last year more companies chose to lease rather than buy forklifts (vs. the previous year)

 

Lease an Electric Forklift in Northern California

Leasing a forklift allows you to:

  1. Use the latest technology  – and maximize productivity
  2. Maximize cash flow – spend money on growth opportunities instead of a loan payment or a replacement battery
  3. Get the forklift you need without overspending – with a lease, you only pay for the hours you use the equipment

Forklift leases are a bit different from consumer car and truck leases. To learn more about the different types of forklift leases and which one is best for your business, contact us online or by phone.


Bay Area - Livermore (510) 379-5210
Fresno (559) 834-9500
Sacramento (916) 376-0500
Salinas (831) 757-1091 

Further Reading
Forklift Financing: Lease Vs. Purchase
When to Lease Vs. Buy an Electric Forklift - 3 Questions to Ask
Charge Up, Get Paid with CARB LCFS Credits

Charge Up, Get Paid

Topics: Electric Forklifts, Lease

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