A forklift lease purchase is a financing arrangement where you make monthly payments over a fixed term (typically 3-7 years) and have the option to buy the forklift at the end for a predetermined price. It combines the low monthly payments of leasing with the eventual ownership of purchasing.
How It Differs from Standard Leasing
Feature Standard Lease Lease Purchase
Monthly Payments Lower Higher
End-of-Term Return equipment or renew Buy the forklift
Ownership No Yes (at end)
Equipment on Balance Sheet No Yes (capital lease)
In a true lease purchase, your payments build equity toward ownership rather than just paying for use .
Two Common Buyout Structures
**$1 Buyout Lease**: You pay a nominal $1 at lease end to take ownership. Monthly payments are higher because you're paying down the full equipment value. This is the most common structure for businesses that know they want to keep the forklift long-term .
Fair Market Value (FMV) Buyout: You purchase the forklift at its market value at lease end. Monthly payments are lower, but you face uncertainty about the final buyout price. Best when you want the flexibility to return, upgrade, or buy depending on conditions at lease end .
Real-World Example
A 60-month lease purchase for two forklifts showed monthly payments of $133.22 each, with a $1.00 buyout at term end. The lessor did not retain tax benefits—meaning the lessee claimed depreciation .
Credit and Qualification
Credit Score Typical Down Payment Approval Time
720+ 0-5% 24-48 hours
650-719 5-15% 3-5 days
550-649 15-25% 7-10 days
Prime lessees (680+ score) get best rates. Subprime options exist for scores as low as 550 but may require higher deposits .
Tax Treatment
Lease payments are generally deductible as operating expenses. With a $1 buyout structure, the transaction is treated as a conditional sale for tax purposes, meaning you may claim depreciation deductions .
When to Choose Lease Purchase
Choose lease purchase when you want eventual ownership, can handle higher monthly payments than an FMV lease, plan to keep the forklift for 7+ years, and want fixed monthly costs with no buyout uncertainty.
When to Choose Standard Lease
Choose a standard FMV lease when you want the lowest monthly payments, plan to upgrade equipment every 3-5 years, prefer keeping equipment off your balance sheet, and want maintenance bundled into payments.
Next Step: Contact your local dealer (Toyota, Hyster, Yale, Mitsubishi) to request a lease purchase quote. Compare total cost over the term—not just monthly payments. A $650/month lease purchase over 60 months costs $39,001 total (including $1 buyout), while an FMV lease at $500/month costs $30,000 but leaves you with no asset .