Every business that moves pallets ends up asking the same question: should we hire a forklift or buy one? There’s no single right answer. It comes down to how often you’ll use it, how you want to manage cash, and who you want looking after the machine. Here’s how to work it out.
Start with how much you’ll use it
This is the biggest factor by far.
- A few days or weeks a year (a stocktake, a run of containers, a seasonal peak): hiring almost always makes more sense. A forklift you own costs you money every day it sits in the corner.
- Every day, for years: buying, or a long-term hire, starts to look better. The question becomes whether you want to own the asset or have someone else responsible for it.
- Somewhere in between, or you’re not sure yet: hire first. You’ll find out how much you really use it before committing.
The case for hiring
No big upfront cost. You pay for the machine while you’re using it, and your cash stays in the business.
Servicing and breakdowns aren’t your problem. With most hire arrangements, the hire company maintains the machine. At Damoli, servicing and breakdown cover are included for the length of the hire.
You can change machines. If the job changes, so can the forklift: a bigger capacity, an electric unit for indoor work, or a reach truck for new racking.
It covers the gaps. Hire is the quick fix when your own forklift is off the road, or when a big order lands.
The trade-offs: over a long period, hire payments add up, and you never own the machine. Delivery and pick-up usually cost extra, so factor them in. For a rough idea of the numbers, see what forklift hire costs.
The case for buying
Lower cost over the long run if you use it every day. Once it’s paid off, the main costs are servicing, repairs and running costs.
It’s yours. You can fit the attachments you want and use it however your business needs. When you’re done with it, it still has a resale or trade-in value.
No hire terms to manage. No end dates, no returns.
The trade-offs: you need the money up front, or finance. You’re responsible for servicing and repairs. And if your only forklift breaks down, work stops until it’s fixed, unless you have a backup or can hire one quickly.
New or used?
If you’re buying, a good used forklift costs much less than a new one and still has years of work in it, as long as it’s been looked after. Check the machine properly before you buy (our guide on what to check before buying a used forklift walks you through it), and ask what warranty comes with it. Every forklift Damoli sells comes with a 3-year warranty, and finance is available.
A simple way to compare
Put the two options side by side over the same period, say three years.
Hire: the hire rate for the period, plus delivery and pick-up.
Buy: the purchase price (or your finance repayments), plus:
- servicing
- repairs and parts
- insurance
- the cost of downtime if it breaks down
- minus what you could sell it for at the end
The numbers will depend on your machine and how hard you work it. Your accountant can tell you how hire costs and an equipment purchase are each treated for tax in your situation, which can shift the answer.
Common situations
- Seasonal peak or end-of-financial-year stocktake: short-term hire
- One-off job, e.g. unloading a few containers: short-term hire
- Your forklift is off the road for repairs: short-term hire
- New business, unsure of demand: hire first, then decide
- One shift a day, every day, for years: buy, or long-term hire
- You want no servicing or repair responsibility: long-term hire
- You need a specific attachment set-up for years: buy
You don’t have to pick just one
Plenty of businesses do both. They own the forklifts they use every day, and hire extra machines for busy periods or when one of theirs is being repaired. It keeps the owned fleet small and avoids paying for machines that sit idle.
Talk it through with us
Damoli sells, hires and services forklifts, so we’re not pushing you one way. Forklift hire starts from $19/day + GST, with more than 150 machines in the fleet: 1.8 to 3 tonne gas and electric forklifts, plus reach trucks and scissor lifts (call for rates). If buying suits you better, our used forklifts for sale are mainly Toyota, each with a 3-year warranty and finance available. Whichever you choose, we also offer same-day on-site servicing and repairs across Melbourne.
Call 1300 326 654 or get a quote. We reply within 1 hour during business hours. See our forklift hire options.
