Proudly serving Kansas City and surrounding areas since 1998 with trusted forklift solutions
Finance & Leasing
At RDS Equipment, Inc., we can offer a multitude of lease options to meet your needs. Whether your business requires a short-term, long-term or flexible-term lease, RDS can meet your material handling finance needs.
Your lift and truck specialist in Gardner, KS
WHAT IS A FORKLIFT LEASE?
A forklift lease is a financial way for you to use a forklift for a certain amount of time. You pay for the use of the equipment only, so it is sometimes called a rental. Leasing a forklift may be financial answer for your company. But how do you know?
At RDS Equipment, Inc., we can offer a multitude of lease options to meet your needs. Whether your business requires a short-term, long-term or flexible-term lease, RDS can meet your material handling finance needs.
These are some options to consider to help decide which one is best for you and your business.
Let’s explore the different options and styles of leases that are available for forklift financing.
Operating or Residual Lease:
The Operating lease is the most popular type of material handling lease. It is known as a Fair Market Value Lease (FMV). It is essentially a long-term forklift rental yet offers the lowest monthly payments. You pay for the use of the forklift(s), once the lease ends, you buy the truck for fair market value, continue leasing month-to-month or turn it in. So, if you’d like to purchase the forklift after the lease terminates, a FMV lease may not be your best option. You pay for only the time you use the truck without the full cost of ownership. Please note, you will be liable for any damage done to the forklift while in your possession. So, if your company works in harsh environments, this may not be the lease for you.
Capital Lease:
A Capital lease – also known as a $1 Buyout or Full Payout Lease, $1.00 purchase option lease. This lease is more like a loan if you choose to buy the forklift at the end of the term. Unlike an operating lease, a capital lease passes ownership to you once you’ve made all your payments. At the end of a Capital lease there is a low purchase price. You can buy the forklift for a small amount low as $1. This type of lease works well for harsh operating conditions and high-hour applications. Capital leases typically are reported on the balance sheet and provide certain tax advantages associated with this type of lease structure. It is always recommended to consult with your tax advisor.
One-Pay Lease:
With this type of lease, you only make one up-front payment during the entire term of the lease, resulting in a discounted cash flow benefit and dramatically reduced interest charges. Cost savings are also realized as a result of the elimination of administrative costs associated with processing monthly lease payments.
Flex Lease:
If you want to keep the timeline of their lease open-ended, then the Flex lease is for you. You know how your business moves and with the Flex lease you can terminate the lease early if you don’t need it any longer or continue to lease the forklift at a lower rate. If you choose to terminate the lease, you opt out at the specified time given in the lease and return the truck. You do not own the truck. With all leases, it is your responsibility to maintain the forklift during the duration of your lease.
Retail Installment Balloon Loan:
Provides the same low monthly payment as an operating lease along with certain tax advantages of a Capital Lease and responsibility of ownership. A customer can select a down payment amount of 60%, 70%, or 80% of the initial transaction price. Upon the maturity of the loan, there are multiple customer options including paying off the remaining balloon amount, refinancing the balloon for an additional predetermined term or trade in the equipment and finance a brand new Hangcha forklift.