Should you buy or lease your forklift?

We understand that not all businesses require to purchase a forklift, which is why we have various cost-effective solutions such as hiring the equipment. Conversely, certain businesses may want to purchase them, but this often requires significant capital.

Forkway offer competitive, tailored finance packages to meet the needs of our customers. We have two main finance options available;

Contract Hire

If you’re looking for an advantageous, stress-free and tax-efficient solution, contract hire is the right choice for you. Containing a fixed term agreement lasting usually between 3 and 7 years, your monthly rentals incorporate maintenance, servicing and repairs of the forklift trucks. With a predefined budget, you can avail of the equipment to the fullest before returning the trucks when the contract concludes. Even better is that all of the payments you make are 100% deductible from your taxable income.

Lease Purchase

Just like with many car deals, you can eventually own the forklifts with a lease purchase. At the start of the agreement, you pay the entire VAT as well as a deposit. You then follow a fixed payment scheme for a period of 2 to 7 years, with all interest charges declarable from your taxable income. This type of asset is displayed on your balance sheet and, if you are a small company, 40% of the total value of the equipment can be deducted from your taxable income in the first year. Different to contract hire, lease purchase does not include maintenance and repair charges within the price. If you would like to purchase a forklift, but do not have the funds to do so, this method is perfect for you.

If you would like any further information on our finance options or the equipment we provide, please give us a call on 0844 854 899.

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