FORKLIFT TRUCKS: CONTRACT HIRE VS. LEASE PURCHASE

One of the main advantages of getting your forklift trucks from H&F Forklifts is the price. We know that not every business necessarily needs to purchase a forklift truck because they only need it for a certain amount of time, so that’s why we offer the more cost-effective solution of hiring the equipment. However, some businesses do wish to purchase the equipment but don’t have the necessary capital to buy outright. Offering competitive and individually tailored finance packages is another way that we keep our costs manageable. And there are two main finance types that we have available to H&F customers. Take a look at the two to decide which one suits your individual company needs. Contract Hire If you’re looking for the most cost-effective, hassle-free and tax-efficient option then contract hire is for you. Not only do you receive your forklift truck(s) for a fixed term agreement of usually 3-7 years, your monthly rental includes forklift maintenance, servicing and repairs. With a simple budget, you can take full advantage of the equipment before handing back the forklift trucks once your contract ends. Even better, 100% of the rentals paid can be offset against taxable income. Lease Purchase Much like with car deals, a lease purchase allows you to gain eventual ownership of the equipment. At the start of the agreement the total VAT is paid, along with the deposit. You then make fixed monthly payments over an agreed period of usually 2-7 years with all of the interest charges set against taxable income. This asset is put on your balance sheet and offset ‘capital allowances’ against taxable income at a rate of 25% per annum on the reducing balance, whilst small companies can offset 40% of the equipment value within the first year. Unlike a contract hire, maintenance and repairs are not included in the price. This is the best option for you if you’re looking to purchase forklifts but haven’t got the resources to buy outright. If you’re looking to get your hands on some forklift trucks and would like more information on our finance options, contact us at H&F Forklifts.

For more information on FORKLIFT TRUCKS: CONTRACT HIRE VS. LEASE PURCHASE talk to H and F Lift Trucks