The time has come to order a new forklift. You’ve researched your options and are ready to buy. But what about financing? Would it be better to lease? Read on to learn what to expect when financing or leasing a forklift.
Forklift Financing Options
Most forklift purchases are financed over a 36 or 60 month term with equal monthly payments. Payments are dependent upon a customer's budget and credit rating.
At TMHNC we offer customized financing with seasonal payments. For example: a farmer who conducts business June through September can choose to make payments only during those months. We can also arrange for financing with annual or semi-annual payments. A finance term can be as short as 12 months, or as long as 72 months depending on your needs.
Forklift Lease Options
Leases are popular for both practical and economic reasons. Leased equipment is not capitalized or depreciated, and lease payments are a write-off.
Leasing also allows the business to operate with the newest equipment. For example, at the end of a three-year lease, a company can return their forklift and get a new one with the latest technology. At TMHNC we do our best to make the new lease payment as close as possible to the previous payment.
You can also purchase your leased equipment when the lease term ends. A fair market assessment is conducted when the lease reaches maturity and payments are refinanced based on the value. A business can plan for this in advance, or decide when the lease is up.
Factors that determine a lease payment:
- Length of lease
- Operating conditions
- Running hours
(will the equipment be used more or less than the 2,000 hour/ year average)
At TMHNC we offer flexible lease terms. One customer wanted a five-year lease with a single payment paid upon delivery. No problem! We want our customers to spend time growing their business, not losing sleep over financing. Contact us for more details on our one-pay lease program.
Part of the leasing process also includes a site survey. The leasing company sends a representative to asses the worksite to find out the type of environment the lift truck will be used in, whether it will be indoors or outdoors and how many hours it will be used daily. The survey will also determine if the unit will come in contact with harmful chemicals or be used in any severe applications.
Whether you’re interested in a new or used forklift, both financing and lease options are available from TMHNC. Let us know what your business needs are and we’ll find the right equipment for you with the best possible finance or lease terms. Contact us to schedule time with one of our material handling experts.