More than 75% of new equipment is leased

Most large companies prefer to lease forklifts when the usage is more than 1,500 hours per year.

A new survey finds that leasing offers budgeting stability and a steady influx of new equipment, appealing to companies with large-scale requirements.

"Forklifts are expensive pieces of machinery," says Jaya Krishnan, an analyst at Beroe. "The decision to rent, lease or buy a forklift or an entire fleet depends on your business needs and the end-user industry.

"Both buying vs leasing options have their pros and cons in regards to factors such as utilisation, hours per year, maintenance cost, capitalisation, and depreciation."

Some dealers report that more than 75% of their 'sales' are leased.

"Keeping in view the total cost of ownership, leasing is more expensive than buying. But since it has lower upfront costs, it is a great choice in the short term. And this is a part of the reason why even large companies choose to lease forklifts now," says Krishnan.

"In the end, companies must look into their own needs and requirements instead of looking at what others are doing. Many are leasing forklifts. But that isn't a universal choice. It might not be a good choice for some companies. So, determining one's distinct need is critical."

The analysis was undertaken by Beroe, a provider of procurement intelligence and supplier compliance solutions.