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The Benefits of Long-Term Rentals

The Benefits of Long-Term Rentals

Material-handling equipment, similar to transport tractors, service and delivery vehicles, depreciate rapidly, especially if used in demanding multi-shift operations.

The maximum allowable annual depreciation levels can’t keep pace with the actual economic life cycle of the equipment.

Operating leases or long-term rentals where there is no option to own or purchase the equipment at the end of term can be written off as an operating expense in their entirety.

At expiry, you have the option to extend, renew or terminate.

The primary benefits of long-term rentals are:

  • Optimal flexibility – many different terms and financing options
  • Maximum uptime – new equipment = less repairs
  • No capital investment – off balance sheet financing
  • Use of cash flow for production investment – greater ROI
  • Fixed, predictable, long-term operating costs – easy budgeting
  • Minimal administration – one combined bill
  • Focus on core business – fleet is managed by Liftow
  • Safe and modern equipment – operators are comfortable and efficient
  • Smaller fleet size – less need for spare units because of newer fleet
Previous article How to Evaluate Your Materials Handling Needs

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