Leasing vs Buying Material Handling Equipment

20 Feb 2020 Warehouse Equipment

Understanding the differences between leasing vs buying material handling equipment will help make you make the best decision for your business. At Commander Warehouse, they want to make it is as easy as possible for you to access the material handling equipment you need. That is why they offer a wide range of material handling equipment for sale and for lease.

Why Lease Material Handling Equipment?

Leasing material handling equipment provides small- to medium-sized businesses or businesses with more manageable growth periods with a cost-effective solution for updating their equipment. Leasing also provides a predictable monthly bill for the hours the equipment was used, making the acquisition cost much more affordable than buying outright.

Unlike with purchasing material handling equipment, maintenance is included in the lease contract, which means that you will not have to worry about paying for repairs or completely replacing equipment that breaks down. In most cases, options will also be available at the end of the lease that will allow you to buy out the equipment.

When Should You Lease Material Handling Equipment?

Businesses should consider leasing material handling equipment if:

  • The business is growing at a steady, reasonably measurable rate
  • No large spikes in logistics volume is expected
  • Capital needs to be placed into a tax-deductible expense to reduce tax liability
  • The business cannot afford the upfront cost of ownership

Why Buy Material Handling Equipment

Buying material handling equipment is a great option for businesses that have available capital, especially since the new equipment can be used as a capital asset for collateral on loans or can be sold for additional capital in the event of downsizing or upgrading. While purchasing high-quality equipment represents a substantial upfront cost, you will be able to use the equipment whenever you need it. Buying material handling equipment will also have the lowest long-term cost because the sooner you own the equipment, the sooner it can start paying itself off.

When Should You Buy Material Handling Equipment?

Business owners should consider buying material handling equipment if:

  • The output of capital for equipment costs will not damage business growth
  • There is enough guaranteed income to properly maintain the equipment
  • The equipment will be used frequently

If you would like to learn more about leasing vs buying material handling equipment, or if you are interested in one of their material handling products, please contact Commander Warehouse at one of their four locations across Western Canada or by filling out a contact form on their website.