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At Gregory Poole Lift Systems, we understand that acquiring the right equipment is crucial for your business operations. That’s why we offer comprehensive forklift leasing solutions designed to provide financial flexibility and access to the latest models.
Why Lease a Forklift?
Leasing a forklift offers numerous advantages over purchasing one outright. Here are some key benefits:
- Financial Flexibility: Leasing allows you to use top-tier equipment without the hefty upfront costs. Regular payments are typically lower than purchasing, freeing up capital for other business needs. This can be particularly beneficial for small to medium-sized businesses that need to manage cash flow carefully.
- Access to Latest Models: Stay ahead of the curve with the newest forklift models. Leasing makes it easy to upgrade or replace equipment as your needs evolve. This ensures that your operations benefit from the latest technology and efficiency improvements.
- Maintenance and Repairs Included: Many leasing agreements include maintenance and repairs, saving you from unexpected costs and ensuring your equipment remains in top condition. This can reduce downtime and increase productivity.
- Section 179 Benefits: Under Section 179 of the IRS tax code, businesses can deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This means that leasing a forklift could potentially offer significant tax savings, making it an even more attractive option. By taking advantage of Section 179, you can reduce your taxable income, thereby lowering your tax liability.
Types of Forklift Leases
We offer various leasing options to suit your business needs:
Fair Market Value (FMV) Leasing is a type of lease agreement where the lessee has the option, but not the obligation, to purchase the leased asset at the end of the lease term for its fair market value at that time. Here are the key points:
- Flexibility: FMV leases provide the flexibility to either continue leasing, return the equipment, upgrade to newer models, or purchase the equipment at its current market value.
- Cost Management: This type of lease is beneficial for assets that quickly become obsolete, such as technology equipment, as it allows businesses to manage costs and maintenance issues effectively.
- No Fixed Purchase Price: Unlike fixed-price purchase options, FMV leases do not define a purchase price in advance. The purchase price is determined based on the asset’s market value at the end of the lease term.
- Operating Lease: FMV leases are often categorized as operating leases, which typically have lower monthly payments compared to capital leases.
FMV leasing is a popular choice for businesses looking to stay current with their equipment without the long-term commitment of ownership.
Full Payout (FPO) Leasing, also known as a capital lease, is a type of lease agreement where the lessor expects to recover the full cost of the leased asset, plus financing costs, through the lease payments. Here are the key points:
- Ownership Transfer: At the end of the lease term, ownership of the asset typically transfers to the lessee.
- Long-Term Agreement: These leases are usually long-term, covering most of the assets’ useful life.
- Cost Recovery: The lease payments are structured to cover the full purchase price of the asset, along with any financing costs.
- Tax Benefits: The lessee may benefit from tax deductions related to depreciation and interest expenses.
Full Payout Leasing is ideal for businesses that intend to own the equipment eventually and want to spread the cost over time.
Making the Right Choice
Choosing the right leasing option depends on your specific business situation and goals. At Gregory Poole Lift Systems, we recommend consulting with a financial advisor to fully understand the implications of each option, including the potential tax benefits under Section 179. It’s important to consider factors such as your cash flow, equipment needs, and long-term business plans when making your decision.
Contact us today for more on the leasing options we offer.
