Forklift Leasing Options: Operating vs. Capital Leases

When it comes to financing forklifts and material handling equipment, companies typically choose between two main options: an operating forklift lease or a capital forklift lease. Understanding the difference between these two lease structures can help you choose the best fit for your fleet, your budget, and your long‑term business goals.

Below, we break down each forklift lease type, their benefits, and additional flexible leasing programs that may be available through your local lift truck dealer.

1. Operating Forklift Lease

An operating forklift lease, sometimes referred to as a non‑ownership lease or off‑balance‑sheet financing, allows businesses to use the equipment without taking on ownership. This lease type is designed to help companies maximize productivity while avoiding the long-term costs of aging equipment.

Fair Market Value (FMV) Lease

The most common operating lease is the Fair Market Value Lease (FMV). With this structure, you pay only for the use of the lift truck during the lease term.

Key Benefits of an Operating Forklift Lease

• Lower monthly payments due to the residual value factored into the lease
• Potential tax benefits, as monthly payments may be treated as operating expenses
• Flexible end‑of‑term options, including purchasing at fair market value, returning the equipment, or extending the lease
• Minimal upfront cost, allowing operations to begin using the equipment quickly
• Ideal for high-utilization or fast‑changing environments where equipment turnover is expected

Operating forklift leases are often chosen by companies that want the latest equipment, predictable budgeting, and minimal long-term asset responsibility.

2. Capital Forklift Lease

A capital forklift lease is treated more like a traditional loan. Ownership of the forklift is effectively transferred to the lessee, and the equipment appears on the balance sheet as a long‑term asset.

These leases are usually selected for equipment with a long usable life and low risk of obsolescence.

Dollar Buyout Lease

The most common capital lease is the Dollar Option Lease, in which the lessee purchases the forklift for $1 at the end of the term—officially taking full ownership after completing all payments.

Key Characteristics of a Capital Forklift Lease

• Treated as ownership for accounting purposes
• The asset can be depreciated over time
• Higher monthly payments compared to FMV leases
• Ideal for companies planning to keep equipment long term
• Appropriate for low‑obsolescence lift trucks and attachments

Capital leases are popular for businesses seeking asset ownership, long-term fleet stability, and full control over equipment lifecycle management.

Which Forklift Lease Option Is Right for Your Business?

Forklift lease structures can be tailored to the operational, financial, and seasonal needs of your business. Here are several common forklift leasing programs designed to offer additional flexibility.

90‑Day Delayed Payment Program

This program gives businesses 90 days of equipment use before monthly payments begin, helping to overcome timing challenges such as seasonal slowdowns or budget constraints.

Early Termination Option

Ideal for businesses with changing applications or short-term contracts, this option allows you to structure leasing terms in segments (e.g., 3 years + 2 years). You may return the equipment after the initial term or continue leasing at a reduced payment.

Fixed Purchase Option

This option allows the lessee to purchase the forklift at a predetermined price at the end of the lease term. It may be structured as either an operating or capital lease depending on your financial goals.

Accelerated Payment Leases

Payments start higher in the first year and decrease annually. This aligns well with lower maintenance costs early in a forklift’s lifecycle, especially if you perform in‑house service. Available for both operating and capital leases.

Skip Payment Programs

Designed for businesses with seasonal or cyclical cash flow, skip payments allow for up to three skipped payments per year. This structure works for either operating or capital leases.

Find the Right Forklift Lease for Your Needs

Choosing between a capital or operating forklift lease depends on your financial strategy, utilization level, and fleet management goals. With multiple structures and payment programs available, leasing forklifts can be customized to fit virtually any application or budget.

For expert guidance on forklift financing or to explore leasing options tailored to your business, contact your local Mitsubishi forklift truck dealer.