There could be times when we have to make a difficult decision – is to whether we need to buy or rent a forklift for our business operation. Whatever decision you will make may depend upon the many reasons that you put into consideration – and the primary factor usually involved in making the decision is the budget constraint.
Renting forklift is NOT appropriate for ALL businesses but it is SUITABLE for MOST businesses. If you take the route and go on renting a forklift instead of buying, you might be speculating how much does it cost to rent a forklift for a month of operation.
Renting Forklift Would Cost You Somewhere This Ballpark Figure
When renting, forklift capacity plays a very important role in determining how much would be the rental cost. To give an estimate, here are the figures:
- The average monthly rental cost for a 3,000 to 5,000 pound lifting capacity forklift (such as the standard counterbalance) is somewhere $800 to $1,100.
- The forklift with lifting capacity of 6,000 to 10,000 pound will cost monthly charges of $1,200 to $2,200.
- A lift truck with 10,000 to 30,000 pound (or more) lifting capacity monthly cost will be somewhere around $2,300 to $4,300.
The cost will greatly differ from dealer to dealer as well. The modernity of the forklift also contributes to the rental cost. If it less modern, the cost is cheaper, otherwise, it is more expensive. The advantage of leasing modern equipment is that it does the job done fast and easy.
You Can Save Money If the Forklift Is To Be Rented in Monthly Basis
If the contract is for long term such as in monthly basis, the dealer usually charges lesser rate to the customer. The delivery and pick of the forklift from the dealer to your job site add to the initial cost. Depending on the proximity of the dealer to the worksite, it could you around $100 to $150 that includes fuel, toll and driver fee. Other dealer don’t charge customer for pickup and delivery cost to make their client satisfied with their service, unless the job is far and beyond their service area, then such charges may apply and can be billed to the customer.
Long-term rental could extend up to one year or more. If you need the forklift for few days, daily rate could be expensive, I would rather take the option of renting it in weekly basis.
When Renting Forklift, Take Note of the Agreement’s Terms and Conditions
The agreement is a binding contract between you and the dealer. Either party would not want to have disgruntlement in the future if one of the parties did not abide what was/were stipulated in the agreement. You can edit and modify the terms and include what you think would be beneficial for you and as long as the dealership would agree to it.
The Forklift’s Rental Rate and Contract Period – The amount of money you will pay for a specified duration. The rental rate not only include the base rent or the use of the equipment that covers a month (base rent is computed based on the monthly rental cost), the rental rate also covers other expenses as well. The additional charge that could be imposed to you is the delivery and pickup fees. It could vary. Some dealers won’t charge the client if it is within their specified travel distance, delivery or pickup beyond that distance will incur additional charge for you. The delivery and pickup charge will be agreed upon by both parties during your inquiry and signing of the sales order. Local state’s tax will be imposed on you as well, this will be stipulated in the contract and check if it conforms with your computation. The equipment damage waiver fee (that usually at 8% to 15% of the rental rate) and the environment fee (this is usually collect by the dealer to cover environment related expenses, this is stipulated in the invoice when you sign it) will be charged to you too.
Description of the Forklift Equipment – the rented forklift’s description you put in the sales order and invoice submitted to you by the dealer shall be included in the agreement.
Additional Rent of the Forklift – There could be instances when you exceed the use of the rented forklift beyond the rental period. You shall pay the rental amount of the days after the rental period. The amount to be paid is computed on an 8-hour per day shift.
Additional Charge and Fees That Could Incur – The client will have to pay upon billing additional charge if one of these circumstances happens: redelivery or moving of the forklift to or from your site if the equipment breaks down and needs replacement; delivery driver and toll charges; Fuel of the delivery truck computed based on the weight of the forklift being transported; fine when the forklift received minor damages to its accessories. Read thorough the contract terms, if additional charges are to be obliged by you.
Payment Scheme – The dealer could ask you first payment that covers initial charges as stipulated in the contract agreement. You could pay via credit card, check, or whatever payment method the dealer may ask you to do.
Equipment Inspection During Delivery – this warrants that you as a client has inspected that forklift upon delivery and attest that the equipment is in good working condition and with complete accessories to perform the intended purpose. If you find damage during the delivery, notify the technician and call the dealer before you use the rented forklift. If you fail to do so and you pursue operating the forklift, you waived your right to contest about the damage.
Forklift’s Intended Operational Use – You shall adhere that the forklift is only to be used to its intended purpose and only trained operator shall drive the forklift. No untrained third party shall be given permission to operate it. Otherwise, if accident happens, the dealer shall not be held responsible.
Forklift Repair and Replacement – If the forklift breaks down and needs repair, you stop using it and report immediately to the dealer. The dealer will send a technician to trouble shoot the defect and if the problem was not given remedy, the dealer will replace the defective forklift with similar one. No additional cost shall be imposed to you.
Rental Period Extension – If you wish to extend the rental period of the forklift, you shall notify the dealer day prior before the contract expiration. If you failed to notify the dealer, they will assume and abide the rental period and no extension shall be given.
Read thoroughly the rental agreement terms and conditions. Pay attention to every details. Ask the dealer if you don't understand something, modify the contract if you want to add details, sign if all conforms with you.
Renting forklift for a month is a feasible mean to save money. But make no mistake. Take notice of the additional rental charges that could be hidden from you. It pays if you will read the whole contract and understand each term stipulated in it. You might be thinking that you only have a fixed cost to pay, but consider all charges as well such as delivery and pickup cost, and others as well. Clarify it with the dealer, ask questions and demand discount or favor. They will be gladly to assist you and afford what’s make their client happy. The amount of money would cost you to rent a forklift for a month will depend on the term of rental rate.