Forklift lease options come down to three main choices: a $1 buyout lease (you own the forklift at the end), a fair market value (FMV) lease (lower payments, then buy, return or upgrade), or a short-term rental (no commitment, highest cost per month). Most warehouses, distributors, manufacturers and contractors that will use a forklift for years are better off with a $1 buyout lease. Businesses that replace equipment often or want the lowest payment lean toward FMV.
Below we compare forklift lease options side by side, what they cost, and how to decide.
Forklift lease options compared
| Option | Monthly payment | End of term | Best for |
|---|---|---|---|
| $1 buyout lease | Highest of the leases | You own it for $1 | Long-term use, building equity, Section 179 |
| FMV lease | Lowest | Buy at fair market value, return or upgrade | Fleet upgrades, lowest payment |
| 10% purchase option lease | In between | Buy for 10% of original cost | Lower payment with a planned buyout |
| Rental | Highest per month | Return it | Seasonal peaks, short jobs |
What a forklift lease costs
Your payment depends on the forklift’s price, the lease type, the term, and your credit and time in business. As a rough guide, a $30,000 forklift on a 60-month $1 buyout lease often lands in the range of $600 to $750 a month for a well-qualified business, and an FMV lease on the same truck can run noticeably less. Electric, high-capacity, rough-terrain and telehandler units cost more. Get a quote for your exact unit; payments vary by credit, time in business and equipment.
Terms run from 24 up to 60 months on new and used forklifts.
$1 buyout lease: own it at the end
A $1 buyout lease works like a loan: fixed payments, and the forklift is yours for $1 at the end of the term. Because it’s treated as a purchase for tax purposes, it can qualify for the Section 179 deduction, which lets many businesses deduct up to 100% of the forklift’s price in the year it goes into service, while paying for it over time. Talk to your tax advisor about your situation.
FMV lease: lowest payment, most flexibility
With an FMV lease you pay for the use of the forklift, not the whole thing, so payments are lower. At the end you can buy it at fair market value, return it, or roll into a new unit. FMV works well for electric forklifts whose batteries wear out, and for operations that want a newer fleet every few years. Payments are usually treated as an operating expense.
Lease vs. rent vs. buy with cash
- Conserve cash. Paying $30,000 or more in cash for a forklift ties up money you need for inventory, payroll and growth. A lease keeps that cash in your account.
- Cash flow management. A low capital outlay and a fixed monthly payment let the forklift pay for itself out of the productivity it adds.
- Low, manageable payments. Terms up to 5 years keep payments small, and most of our forklift leases have a $1 buyout.
- Inflation buster. Your lease locks in today’s price and a fixed payment for the full term.
- Rentals add up. A month of forklift rental often costs two to three times a monthly lease payment. If you’ll need the forklift for more than a few months a year, a lease usually wins.
Who qualifies
Forklifts are easy to finance because they hold their value. Well-qualified businesses can often get $0 down, and many deals are approved with just a one-page application. Startups are reviewed case by case and may need a down payment. New and used forklifts from dealers or private sellers can be financed. Liberty Capital starts with a soft credit inquiry, which doesn’t affect your score.
Common misconceptions
“Leasing always costs more than buying.” Not when you count what your cash could earn elsewhere in your business, the tax deduction, and the time value of money. Compare total cost, not just the sticker price.
“I can’t lease a used forklift.” You can. Used forklifts are financed every day, with terms up to 60 months depending on age and condition.
“Maintenance is included in every lease.” Only in some full-service dealer leases. Most finance leases cover the equipment only, so budget for maintenance, batteries and tires.
Get a forklift lease quote
Liberty Capital Group has financed equipment nationwide since 2004: new and used, all credit types, with a personal account manager on every deal. See our forklift financing and equipment leasing pages, or get a quote for your forklift today. Call (888) 511-6223.
FAQ
How long can I lease a forklift?
Typically 24 to 60 months, on new and used units.
Can I lease more than one forklift on the same deal?
Yes. Multiple units, batteries, chargers and attachments can be combined into one lease.
What happens if I want to upgrade early?
Many lenders will let you roll the remaining balance into a new lease for a newer unit. Ask about this before you sign.