Forklift contract hire: can you transfer it to another business?
Most forklift rental and lease agreements run for five years. If a site closes or volumes drop, here's how to ask about transferring a forklift lease.
Most forklift rental or lease agreements run for five years, according to the Fork Lift Truck Association. That's a long time in warehousing: contracts change, sites close and volumes move. When a business ends up with forklifts it no longer needs, transferring the agreement to another business can be cheaper than paying to end it.
Who you're dealing with
Many forklifts are leased directly from the dealer or manufacturer, rather than from a bank or leasing company. That matters: the supplier decides whether another business can take the agreement over, and some prefer to take the truck back and hire it out again themselves. So ask before you advertise.
Questions to ask your supplier
- Will you consider transferring this agreement to another UK business?
- What fee applies, and what will you need from the new business?
- Does the maintenance package transfer too?
- What would it cost to end the agreement early instead?
What a taker will want to know
- Type and capacity. Counterbalance, reach truck, pallet truck or telehandler, and the rated capacity.
- Lift height and attachments. Mast height, side-shift, forks and any other attachments.
- Power. Electric (battery age and charger), LPG or diesel.
- Hours on the clock and the annual hours allowance.
- Condition. The Fork Lift Truck Association advises checking and recording damage at handover, because damage beyond fair wear and tear is chargeable. Recent photos help.
- Inspection records. When the next thorough examination is due.
How Swap-a-Lease helps
You can now list a forklift or materials handling lease on Swap-a-Lease, choosing "Forklift / materials handling", and record hours rather than miles. Businesses that need a truck can post a Wanted request for one.
It must be a lease (contract hire, rental or finance lease). Hire purchase is a purchase on finance, so it can't be transferred here.
Next step
Ask your supplier the questions above in writing. If it agrees to a transfer, list the forklift for £39.99. A success fee is only due if the transfer completes.