Frequently Asked Questions
What are my acquisition options?
There are two primary ways to acquire forklifts and materials handling equipment from NITCO.
- $1.00 Buyout Lease (also referred to as a Full Payout Lease, Capital Lease or Lease to Own)
- Fair Market Value Lease (also referred to as a True Lease or Off Balance Sheet Financing)
- Lease with Maintenance (also referred to as a Full Service Lease)
The Purchase option is most often used by a smaller operator who wishes to keep the transaction as simple as possible by paying cash or cutting a check for the equipment. For a business that has lighter forklift usage and therefore expects a longer equipment life, a direct purchase may make perfect sense.
The $1.00 Buyout Lease, a much more common option, is generally best for a customer who wants to own the equipment when the lease expires. It enables the customer to take ownership for $1 at the end of the lease. Also known as a Capital Lease or Lease to Own option, it generally comes with higher monthly payments than a True Lease or Fair Market Value Lease. Under this option, the lessee assumes some risk of ownership, but also the ability to claim tax deductions due to the depreciation of the asset and interest paid on the lease.
The Fair Market Value Lease allows the customer to use the equipment for a specified number of months, generally for a lower monthly payment than Lease to Own options. At the conclusion of the lease, options include returning the equipment, purchasing the equipment at fair market value, continuing to lease the equipment or returning it and upgrading to something newer. This method can also offer tax advantages in that the lease payment can be treated as an operating expense. It also enables customers who run multiple pieces of equipment to more easily schedule planned replacement.
The Lease with Maintenance works somewhat like a long-term rental in that you make a monthly payment and the forklift provider is responsible for reliability and repairs.