16 Mar Leasing Forklifts – Ensure You Pay What You Sign For
Predetermined replacement cycles, lower monthly payments, less paperwork, the latest model and features, and flexibility to adjust your fleet are just a few reasons many choose to lease forklifts.
However, there are a few factors you need to consider before signing the leasing paperwork.
Leasing options vary greatly between each material handling provider. For this reason, looking at the lowest monthly cost to make your decision can lead to a very expensive outcome. That’s why it’s always important to read the fine print.
For example, who are you leasing from? The original manufacturer or a third party? Small details like this make choosing the right material handling provider and comparing the true cost of leasing anything but straightforward.
Tips to better understand the true cost of leasing:
The Doc Fee
Most lease deals include a documentation fee. Doc fees vary depending on who you’re leasing from. They fluctuate in amount and can be a recurring fee or a one-time fee. Check with your provider to see what their doc fee is. A good rule of thumb is if the monthly cost of leasing is low, there is a good chance the doc fee could be costly.
Overtime Fees
If users manage to underestimate the usage of their leased forklifts, providers can charge overtime fees at the end of their term. The severity and cost can vary depending on your provider. However, many providers want to continue their relationship with you and thus communicate this with you upfront. For this reason, if you run into this issue and need to adjust your agreement, most providers will help if you communicate with them and ensure you avoid any overtime penalties.
End of Term Repairs
Many manufacturers and dealers specialize in liquidating their equipment. Overall, this and other measures reduce the risk of expensive repairs and other unexpected costs at the end of your leasing term. During this term, many providers offer short-term rental services to bridge the time gap in the event of unplanned repairs.
Interim Rent
Depending on what provider you choose to lease from, your lease can start on the day you both agree on, or it can start on the first of the month or quarter, which forces you to pay interim rent. Save yourself from having to pay additional useless months and always check with your provider before signing the paperwork, and make sure they choose a date that works for you and not for them.
Automatic Renewals
Avoid automatic renewals that can lock you into a contract for up to 12 months, and be sure to reach out to your provider months in advance of your lease expiring. Whether you choose to renew your lease, purchase the forklifts, or replace or return them. No matter your decision, each option takes time, and you don’t want to get stuck in a contract you didn’t agree to.
Freight Charges
When the end of your agreed-upon term is up, you want to consider any freight charges at your expense. Especially in these difficult times, these charges can be very costly. For example, if you lease from a third-party provider, you may run into a snag. Many of these third-party dealers aren't local. Therefore, you could end up shipping the leased forklift(s) across the country at the lessee's expense. Before signing the paperwork, be aware of any freight charges at your expense.
Leasing Forklifts review
Never sign leasing documents before doing a thorough review and having a discussion of exactly what you’re paying for. Save yourself from accidentally blowing your budget and racking up these costly fees and bills.
The Lift Power Way – Leasing Forklifts
Find a leasing partner that values your relationship, and informs and guides you through every step in the leasing process. At Lift Power, we provide flexible financing solutions on both used and new equipment by customer necessity! Lift Power works with multiple companies to get each and every one of our customers the best rates and leasing plans, which serves to save money upfront AND over time.
Leasing Term Solutions Include
24 Months
36 Months
60 Months
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