As we've shown in other blogposts, forklift ownership can have advantages in certain operations over other financing options, such as short-term rental or leasing.
The forklift world is rapidly changing, and manufacturers are constantly releasing new models and products to keep up with the market's demands - whether that means better ergonomics, more stable masts, or innovative attachments made for handling specific products.
Buying forklifts outright brings many advantages, and the right machine can bring many years of faithful service. However, it also means you may not be able to take advantage of new solutions and advances in technology until it's time to purchase new trucks again. Choosing leasing, on the other hand, allows you to start using new models much sooner.
With proper service and maintenance, a high-quality forklift truck can put in years of service, even in a busy materials handling operation. And depending on the unique requirements of your operation, an older used machine could potentially do the job just as well as a brand new truck.
However, it can sometimes make sense to upgrade to a newer model. Manufacturers release new trucks and upgraded versions of existing models on a regular basis, and the improvements in these updated models could potentially make a big difference to your operation.
So, it's finally here - on 1st January, IFRS 16 Leases came into effect in Europe and beyond. However, in the materials handling industry, where forklift leasing is common, there's still some uncertainty about what the new regulations mean, and how financial reporting will change.
When procuring new forklift trucks, it may be tempting to go for the machine with the lowest purchase price.
However, trying to get the most for your money based on this single cost is the wrong approach. The truck's sticker price is one thing, but a much bigger share of the costs that will come with your forklift during the time you own it come after the purchase, during its operation.