Adding new equipment to your fleet unlocks new potential for your business. While leasing forklifts has advantages, it is advised to read the fine print of your contract.
There is more to leasing agreements beyond the monthly payment. Taking a closer look at the fine print and remembering these forklift rental mistakes to avoid will protect your bottom line.
1. Expensive Doc Fee Conditions
A fee for creating a tailored leasing document, known as the doc fee, can add up in cost. These documents are necessary for most leasing parties, but the extent of what they include looks different between sources. Your leasing document may require fees for preparing the contract and processing your application.
Ideally, this will be a one-time expense. If you find that your monthly payment for equipment seems oddly low, it’s possible the company you are leasing from is adding hidden, recurring doc fees.
2. Equipment Overuse Discrepancies
It is common for leasing companies to limit the number of hours you can operate forklifts during the lease agreement.
Exceeding these limits results in additional fees. Always check policies for overuse and whether or not you can extend your leasing agreement before signing. This helps you adapt to changing demands without financial penalties.
3. Steep End-of-Agreement Repair Fees
For a lease to be mutually beneficial, your leasing partner will request that forklifts be returned in a desirable condition. Normal wear and tear is expected, but you should review policies surrounding severe damage should anything occur.
Ask your forklift leasing company to explain what they consider normal wear and tear versus what you will be responsible for covering.
4. Unique Leasing Dates
Not all leasing agreements follow the same structure. One party may state that forklift leasing begins the day your machine is delivered or picked up. Others might indicate that payments are due the first day of every month or at the start of a business quarter.
It is your responsibility to check that the leasing structure works for your project timeline. Otherwise, you could be charged for more than you’ll use a machine.
5. Automatic Lease Renewals
Leasing companies require you to decide whether you will extend your lease, buy the machine or return the forklift.
Failing to give a decision by the date mentioned in your contract could result in you being locked into an automatic lease renewal. Some guidelines could indicate you have no choice but to continue leasing for a minimum of three months.
6. Freight Charges
One of the most expensive forklift leasing traps to identify is the cost to return any equipment via a freight service. Working with a leasing company close to where you are working helps you sidestep these charges, as there is a reduced chance that equipment will need to travel between states or be stored before the return.
Rent Equipment From Medley Equipment Company
Our professionals are proud to serve teams in Oklahoma, New Mexico, Texas, Arkansas and Missouri with rental equipment. We offer forklifts, aerial and construction machines and oil field equipment.
Reach out to us to learn more about the rental process.