The time has come to order a new forklift. You’ve researched your options and know what truck you want, but what about financing?
Is it better to lease or buy a forklift? How do forklift leases work?
(SPOILER ALERT: they’re a lot different than leasing a car).
Read on to learn about your forklift financing options and see two limited-time special offers.
Forklift Financing: When to Lease vs. Buy a Forklift
Most forklift purchases are financed over a 36 or 60-month term with equal monthly payments. That said, a finance term can be as short as 12 months or up to 72 months, depending on your needs. Payments depend on the purchase price, customer's budget and credit rating.
At TMHNC, we offer customized financing with seasonal payments. For example: a farmer who conducts business from June through September can choose to make payments only during those months. We can also arrange for financing with annual or semi-annual payments.
View our finance application.
Forklift Lease Agreements: What You Need to Know
In the U.S., 80% of companies lease some or all of their equipment. Leases are popular for both practical and economic reasons.
- Leased equipment is not capitalized or depreciated, and lease payments can be written off (always consult a tax professional).
- Leasing also allows your business to use the newest equipment. In competitive industries, this can be a significant advantage.
- Operating lease payments are typically lower than finance payments, allowing you to have more cash on hand.
Read more about when to lease vs. buy a forklift.
How Much is a Forklift Lease?
It depends. Factors that determine a lease payment include:
- The length of lease
- The value of the equipment
- Running hours (will the equipment be used 750 hours/yr? 2,000 hours/yr?)
- Some customers choose a forklift lease with maintenance included
- The operating conditions
Part of the leasing process includes a site survey. A representative will visit the worksite to see if the forklift will be used indoors or outdoors, check out the overall work environment and assess whether unit will come in contact with harmful chemicals or be used in any severe applications.
Example Forklift Lease Cost per Month
As a rough estimate, you can expect to pay approximately:
- $375 – $500 per month to lease a $25,000 forklift
- $600 – $950 per month to lease a $50,000 forklift
The above is just a starting place. TMHNC offers flexible lease terms.
One of the most popular options is the flex lease. This type of lease can include two (sometimes three) lease contracts in one. After the first contract ends, you can return the equipment early, or you continue to lease the equipment – usually at a lower rate. We can also match the lease periods to your customer contracts and commitments.
We had a customer who 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.
Learn more about the forklift lease options from Toyota.
You can also purchase the forklift 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.
Save BIG When You Lease an Electric Forklift
If you’ve hesitated to use an electric forklift because of the battery replacement cost, leasing is the perfect solution. You can time the lease so you return the forklift before the forklift battery needs to be replaced.
As an added bonus: businesses in California can get paid to charge electric equipment. It’s a screamin' deal. Here are two more:
Limited-Time Forklift Lease Deals
For the month of October 2022, we're running a lease special on Toyota's 3-wheel electric forklift (model 8FBE18U – read a review of this forklift) and Hangcha's electric forklift with lithium battery (model FB18TLi - learn more about Hangcha forklifts).
To take advantage of the special forklift lease deals above, or to get answers to any questions you may have, contact a friendly and knowledgeable TMHNC team member at one of our locations in Livermore, Fresno, Sacramento or Salinas. Tell us what your business needs are, and we’ll find the right equipment for you with the best possible finance or lease terms. Contact us online or by phone.
Bay Area - Livermore (510) 675-0500
Sacramento (916) 376-0500
Fresno (559) 834-9500
Salinas (831) 757-1091
- When to Lease vs. Buy an Electric Forklift - 3 Questions to Ask
- Is it Better to Lease or Rent a Forklift?
- When to Rent vs. Buy a Forklift