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Monday, October 3, 2022

When leasing a forklift, there are often two options available for you to choose from: Closed-End Lease or Open-End Lease. It’s important when doing your initial research of these various leasing programs to understand the pros and cons of both and how they will impact your finances. When choosing to lease a forklift through Toyota Industries Commercial Finance (TICF) you will find a Closed-End Lease to be your only option. The reasoning? Closed-End Leases are the most beneficial to the end customer for liability and Return on Investment (ROI). Explore the differences between both leasing options below to learn why.

Understanding Forklift Lease Options

CLOSED-END LEASE:

A basic understanding of Closed-End Leases means that it is closed to the lessee at the maturity of the lease. More simply put, when in a Closed-End Lease, the lessee will make their scheduled monthly payments throughout the agreed-upon term of the lease. At the end of the lease, the lessee has no contingent liability of the lease-end residual. Additionally, the leasing company is under no obligation to sell it to the customer. However, the customer may be provided with an option to purchase the equipment. A Closed-End Lease allows the lessees to simply return the equipment and move on to their next new lease, which means they will receive the latest equipment technology. On a Closed-End Lease, a customer is required to maintain the equipment in a safe operating condition with no liability for the residuals. When leasing a forklift through TICF, lessees are offered cash management flexibility in the structuring of lease payments along with the possibility of the lease payments being tax-deductible.

 

 

Toyota Commercial Finance

Looking for a partner with finance packages for all your material handling needs? Toyota Commercial Finance has the tools available to help.

LEARN MORE

CLOSED-END VS. OPEN-ENDED LEASE:

When comparing a Closed-End Lease with an Open-End Lease, an Open-End Lease typically has more flexible terms. However, a downfall is that the lessee takes on the depreciation risk of the asset. This means when a customer enters into an Open-End Lease, they will use the forklift for the entire length of the lease term, and after the lease expires, the customer is liable for the remaining residual balance of the equipment.

Since the lessee has no obligation to purchase the leased asset upon lease expiration and does not have to worry about whether the asset will depreciate more than expected throughout the course of the lease, it is often noted that Closed-End Leases are better for the average person.

EXAMPLE OF A CLOSED-END FORKLIFT LEASE

Typically, a Closed-End Lease comes with a fixed rate and a term that will run for a certain amount of time (example: 60 months). The lessee might want to terminate the agreement early, a move that often incurs additional fees for the early exit. For forklifts procured through such an agreement, there are often annual operating hour limits that tend to stay around 2,000 hours. If the use of the forklift exceeds those limits, the lessee is then responsible for paying additional fees. Furthermore, the lessee is responsible for any excess wear and tear that occurs with the asset.

At the conclusion of a Closed-End Lease, the lessor might look to sell the asset at its depreciated value. It is possible that the lessee might still seek to purchase the asset at this new rate, and there may even be incentives offered to complete such a deal at a reduced price.

When financing a forklift or forklift fleet, always remember to ask a lot of questions and obtain as much information as possible. Your local authorized Toyota Dealer and Toyota Industries Commercial Finance are happy to provide you with any additional information you need as you begin your forklift leasing process.

Posted by tfinco at 10/3/2022 8:47:00 PM
Tuesday, September 29, 2020

Operator preferences govern purchasing decisions now more than ever. This extends beyond just the forklift itself and into the options that allow it to be custom tailored to fit operator and application needs. Different types of seats, pedals, grips, and armrests all play a key role in keeping operators satisfied, happy, and productive.

While some operators are perfectly content with using the same bells and whistles they’ve grown accustomed to over the years, there are many new technologies to make their lives easier. One such example is the controls used to handle their daily tasks.

For years, cowl-mounted levers have been the most popular method for manipulating all hydraulic functions, and for good reason. It’s what most forklifts are built with, so it’s likely what you’ve been using ever since you started driving one. That level of familiarity allows you to be productive and efficient, but it also may make you resistant to trying something new that could push your comfort and productivity to new heights.

One such solution is joystick controls. Toyota’s optional EZ Control Joystick offers a revolutionary approach to material handling by housing all hydraulic controls inside a single handle. Lift, tilt, and all auxiliary functions such as side shift and fork positioning can be controlled within the palm of your hand.

The horn button and forward/reverse gear shift are also located on the handle for added convenience. And the armrest has fore and aft, vertical, and tilt adjustments to optimize comfort and productivity.

Finding a location to store small items like pens, tape, and small tools for quick access can be challenging. The EZ Control Joystick comes complete with a storage compartment with two USB charging ports to allow operators to conveniently store objects and charge portable electronic devices.

In material handling, precise handling of loads is key to reducing product damage and maintaining productivity. The EZ Control Joystick utilizes an ISO style joystick design that is found in construction and agricultural equipment, which require the simultaneous use of a wide variety of functions. As proven in these high-profile applications, the joystick’s durability and performance can help reduce downtime and power you to new levels of success.

Ultimately, which type of control devices you use comes down to what works best for your application and operator preference. If you feel like joystick controls may benefit your operation, contact us today for a demo or to learn more about the technologies that are available to empower your operators and your business.

Original Post: Trinton Castetter, Product Marketing Specialist, Toyota Material Handling

 

Posted by tfinco at 9/29/2020 7:24:00 PM
Thursday, March 12, 2020

The material handling industry is composed of limitless application varieties. Sure, you have your general industries such as cold storage or lumber where common elements are shared from location to location, but even within these environments you have differences that need to be accounted for. This includes different floor types, ambient temperatures, racking configurations, lighting conditions, and so much more. With all of these varying conditions, how can you find a forklift that will work for all of them? The answer is: you can’t.

This is why forklift options are so important and so prevalent in the material handling industry, because it gives you an opportunity to customize your forklift to fit your specific needs. If you’re in a cold storage environment, you likely need additional safeguards to protect against moisture and low ambient temperatures while a forging application is more concerned with how high ambient temperatures could damage hydraulic hoses and other components.

These deltas can even be boiled down to some of the simplest accessories such as forklift lights. With so many lighting options available, how do you know what’s best for your application? The following breakdown will help explain some of the different options out there and their benefits so that you can make a more informed opinion next time you speak with your local, authorized Toyota dealer.

Lighting Options

Bulb Types

Halogen Lights – Halogen lights use a typical bulb with a filament that can be damaged due to vibration or shock. They also have more amp draw than LED lights, meaning your battery will be drained faster which can reduce your runtime on battery powered forklifts. Halogen lights are cheaper than LED in most cases, meaning they will cost you less money upfront.

LED Lights – LED lights are more durable than halogen due to the lack of a filament, they don’t get as hot as halogen and they don’t have as much amp draw from the battery. LED headlight lenses are also typically made out of plastic instead of glass, which is ideal for companies that work with consumable goods. LED lights are typically more expensive, but could save you money over time due to less replacement cost and lower electricity bills for battery powered products.

Headlights

Standard Overhead Guard Mounted Headlights – Most forklifts with an overhead guard come standard with headlights mounted near the top of the overhead guard on the left and right overhead guard pillars. These lights can sometimes be modified or removed to be compatible with other options such as enclosed operator cabins.

Inset Headlights – Inset headlights are mounted further inward on the overhead guard and typically mounted to the top. Moving the lights inward within the confines of the overhead guard can better protect them from damage, but can also reduce the effectiveness of the lights since the mast can block some of the light being projected forward.

Low Profile Headlights – The headlights are have a narrower profile than the standard headlights, but are typically mounted in the same location. This allows them to be better protected without having to move them completely within the confines of the overhead guard. There are typically overhead guard mounted and mast mounted versions.

Front Combination Lights – Combination lights typically add additional functions to the standard overhead guard mounted headlights. This includes turn signal lights and parking/clearance lights.

Rear Work Lights

Rear Work Light – Rear work lights are mounted to the rear of the overhead guard and aimed behind the forklift. These are helpful for lighting the area behind the forklift, which is typically useful when travelling in reverse.

Low Profile Rear Work Light – A narrower work light is mounted on the rear overhead guard of the forklift and is typically mounted within the confines of the overhead guard to better protect it from damage.

Rear Combination Lights – This option rovides additional indicators on the rear overhead guard of the forklift. This typically includes back-up lights, stop/tail lights, and turn signal lights.

Specialty Lights

Strobe Lights – Strobe lights intermittently flash and are designed to help alert pedestrians and other operators of the forklift’s presence. They came in many different colors such as blue, red, amber, and clear and can also be mounted in different locations depending on the model.

Blue Spot Lights – Blue spot lights are usually mounted on the overhead guard of the forklift and aimed down at the ground in front of or behind the forklift. The distance the light is aimed away is up to the customer to determine based on the application. These lights are designed to help alert pedestrians and other operators of the forklift’s presence. In general, these can be more useful when entering and exiting aisles where the forklift and other lights may not be visible and where the color of the light stands out in the given environment. Also available in other configurations such as key-activated, travel direction-activated, and in different colors such as red.

Red Zone Light – These lights are mounted on the left and right side of the overhead guard and aimed at the ground by the customer, similar to the spot lights. They shine a red strip of light at the ground that is designed to alert operators and pedestrians to the forklift’s presence. In general, these can be more effective where the light stands out in the given environment.

Activation Types

Key On, Headlights On – The headlights are wired to the key switch and will turn on when the key switch is turned on. This is a helpful time saver for when headlights are frequently used such as when loading and unloading trailers.

Key Off, Headlights Off – Similar to the key on lights, this option only turns off the headlights when the truck is turned off. This is helpful to reduce amp draw on the battery. Leaving the lights on for a prolonged period of time can drain the battery to the point that the forklift will not start.

Key On, Key Off Lights – This option will automatically turn on all associated lights when the key is turned and will turn them all off when the forklift is turned off. The lights associated with this option may vary, contact your local, authorized Toyota dealer for more information based on your configuration.

Auto Lights Off (Oil Pressure) – Lights are turned off on the forklift automatically when the oil pressure reaches a predetermined level after the forklift is turned off. This ensures the lights are turned off even if the key is turned on, but the engine has not been started.

This list contains just a few of the options available today. Toyota is working to constantly develop new, innovative options and our team of expert engineers can even design custom solutions to work for you through our Toyota Special Design Request process. Be sure to contact your local, authorized Toyota dealer for more information regarding what is available and for helpful advice on what may be best for your specific environment.

Original Post: ToyotaForklift.com

Posted by tfinco at 3/12/2020 4:27:00 AM
Tuesday, February 11, 2020

Electric vs. Internal Combustion Engine Forklifts

The great debate – electric forklifts versus IC (internal combustion) forklifts. This decision is not only for new companies. Established companies may also weigh the advantages and disadvantages of each fuel, especially if there is a shift of priorities to “go green.”

Electric Forklifts

The forklift industry has experienced a shift in sales, with electric forklifts now accounting for nearly 60% of the forklift market. Electric forklifts are rising in popularity due to advances in technology that are allowing them to operate more comparably to internal combustion engine forklifts in regards to performance and run time. The emergence of fast-charging capabilities, higher-voltage outputs, and new and improved battery, pump, and motor technologies are some of the reasons for these breakthroughs.

Electric forklift advantages include:

  • No exhaust emissions: Electric forklifts are powered by electrical energy sources such as batteries or fuel cells, which eliminates an employee’s exposure to potentially harmful exhaust emissions.
  • Reduced maintenance costs: Electric forklifts use no disposal waste (i.e. engine and transmission fluid) and a high percentage of battery lead can be recycled.
  • Operator ergonomics: Less noise and vibration is generated by the electric forklift, reducing operator fatigue.
  • Decreased repair costs: Electric forklifts have less moving parts to maintain and repair. AC motor technology further eliminates brushes to create no spark hazard and better speed control.
  • Lower long-term fuel costs: Batteries for the electric forklift can be recharged. Although the upfront costs for batteries and chargers can be expensive, the return on investment over time is typically higher than when using fuel.

With these advantages come other factors to consider. Although electric forklifts have lower lifetime fuel costs, the initial cost is higher. In addition to the cost of the battery, an area for charging, watering and cleaning must be arranged. Certain electric forklifts can be at a disadvantage when using the forklift in an outdoor application, depending on the design of the forklift. Many forklifts today, including Toyota’s 3-Wheel Electric and 80V Pneumatic models are designed to protect critical forklift components from potential damage due to water intrusion. Downtime can also be experienced if the battery is not charged or equalized properly.

IC Forklifts

The market is still strong for IC forklifts. They account for about 40% of the forklift market and are viable solutions for both indoor and outdoor applications.  IC forklifts tend to be more popular for outdoor, high-capacity applications and for specialty applications such as paper roll handling and container handling.

IC forklift advantages include:

  • Flexible application: IC forklifts are good indoors and outdoors. They operate well in rain and other inclement weather.
  • Multi-shift use: The fuel savings associated with electric forklifts is greatly diminished or negated when multiple batteries are required to keep an operation running. These batteries also take up additional space in a facility, reducing efficiencies and increasing operating costs.
  • Lower initial cost: On propane powered forklifts, only the investment of propane tanks and their storage area is needed to operate the forklift. Gasoline, diesel, and CNG powered forklifts are usually purchased when refilling stations are conveniently available. The infrastructure for these stations, however, can be very expensive if they don’t already exist at your facility.
  • Easy to refuel: IC forklifts running out of fuel do not require a lengthy charging period. An operator can easily replace the propane tank in 5 minutes and then continue production. Gasoline, diesel, and CNG powered forklifts can also be refueled in a matter of minutes depending on their location. This is especially important with a multi-shift operation.

Other factors to consider when purchasing an IC forklift include providing ventilation in the warehouse due to emissions, operator fatigue due to noise and vibration and the physical requirements of changing propane tanks. Finally, if the operation does not require an IC forklift you should consider the lifetime costs of maintenance, repairs and fuel cost when compared to an electric forklift.

LP vs. Gasoline vs. Diesel vs. CNG Powered Forklifts

Once you’ve made the choice to go with internal combustion engine powered forklifts for your operation, you now need to decide which fuel type is best for you.  The following tips should help to point you in the right direction.

Liquid Petroleum Gas (LP) – LP is ideal for customer locations that do not have gasoline, diesel, or CNG refilling stations readily available.  If you’re purchasing forklifts for a new facility, LP has the lowest initial cost since all you essentially need to purchase are LP tanks and a place to store them.  LP tanks can also be swapped in a matter of minutes, which can reduce your amount of downtime when refueling.  LP forklifts are available with both cushion and pneumatic tires and are ideal for both indoor and outdoor operations.

Diesel – Diesel fuel is highly efficient and can provide longer run times in general compared to other fuel types. One by-product of the combustion process with diesel is soot, which can accumulate in the exhaust system of a forklift and needs to be removed. Most Toyota forklifts are built with diesel oxidation catalysts so that this is slowly burned off over time, but there are some forklifts out there that use diesel particular filters that need to go through a manual regen process to burn away these deposits.  This can lead to more downtime since the forklift must be parked and not in use for the manual regen process to complete.  In general, diesel engines also have higher torque than their LP or gas counterparts, which can provide increased gradeability and acceleration. While fuel pricing is subject to change, diesel currently costs more per gallon than gasoline, providing a better return on investment over years of use. Diesel forklifts are generally only available with pneumatic type tires and are designed for outdoor use. This is mostly due to the fact that they are louder machines and produce more emissions than LP or gas powered forklifts.

Gasoline – Gasoline only powered forklifts are pretty rare in the material handling industry due to the popularity of dual fuel forklifts and the general lack of gasoline fueling stations, but they do serve a purpose. For customers that have refueling stations readily available, conveniently placed, and able to accommodate the size of their fleet, there is little reason to use LP or dual fuel configurations. Gasoline powered forklifts also do not have an LP tank and bracket on the back of the forklift, which can increase rearward visibility. They are also typically more powerful than their diesel alternatives and can provide increased travel and lift/lower speeds.

Compressed Natural Gas (CNG) – Compressed Natural Gas (CNG) powered forklifts also require the appropriate refilling equipment in order to operate, but this type of fuel provides some distinct advantages. CNG is better for the environment and for overall air quality due to the fact that it produces less emissions and the natural gas dissipates into the air as water vapor and carbon dioxide in the event of a leak. Unlike LP forklifts, the CNG tank is never removed, but is actually refilled which can reduce downtime and operator strain. Infrastructure for CNG refueling stations, however, can be expensive due to the large amount of land required and general cost of equipment and installation. This, along with other barriers to entry such as obtaining the proper permits and having an adequate natural gas supply make CNG an unpopular choice in the current material handling market.

Posted by tfinco at 2/11/2020 6:07:00 AM
Wednesday, December 11, 2019

The material handling industry is composed of limitless application varieties. Sure, you have your general industries such as cold storage or lumber where common elements are shared from location to location, but even within these environments you have differences that need to be accounted for. This includes different floor types, ambient temperatures, racking configurations, lighting conditions, and so much more. With all of these varying conditions, how can you find a forklift that will work for all of them? The answer is: you can’t.

This is why forklift options are so important and so prevalent in the material handling industry, because it gives you an opportunity to customize your forklift to fit your specific needs. If you’re in a cold storage environment, you likely need additional safeguards to protect against moisture and low ambient temperatures while a forging application is more concerned with how high ambient temperatures could damage hydraulic hoses and other components.

These deltas can even be boiled down to some of the simplest accessories such as forklift lights. With so many lighting options available, how do you know what’s best for your application? The following breakdown will help explain some of the different options out there and their benefits so that you can make a more informed opinion next time you speak with your local, authorized Toyota dealer.

Lighting Options

Bulb Types

Halogen Lights – Halogen lights use a typical bulb with a filament that can be damaged due to vibration or shock. They also have more amp draw than LED lights, meaning your battery will be drained faster which can reduce your runtime on battery powered forklifts. Halogen lights are cheaper than LED in most cases, meaning they will cost you less money upfront.

LED Lights – LED lights are more durable than halogen due to the lack of a filament, they don’t get as hot as halogen and they don’t have as much amp draw from the battery. LED headlight lenses are also typically made out of plastic instead of glass, which is ideal for companies that work with consumable goods. LED lights are typically more expensive, but could save you money over time due to less replacement cost and lower electricity bills for battery powered products.

Headlights

Standard Overhead Guard Mounted Headlights – Most forklifts with an overhead guard come standard with headlights mounted near the top of the overhead guard on the left and right overhead guard pillars. These lights can sometimes be modified or removed to be compatible with other options such as enclosed operator cabins.

Inset Headlights – Inset headlights are mounted further inward on the overhead guard and typically mounted to the top. Moving the lights inward within the confines of the overhead guard can better protect them from damage, but can also reduce the effectiveness of the lights since the mast can block some of the light being projected forward.

Low Profile Headlights – The headlights are have a narrower profile than the standard headlights, but are typically mounted in the same location. This allows them to be better protected without having to move them completely within the confines of the overhead guard. There are typically overhead guard mounted and mast mounted versions.

Front Combination Lights – Combination lights typically add additional functions to the standard overhead guard mounted headlights. This includes turn signal lights and parking/clearance lights.

Rear Work Lights

Rear Work Light – Rear work lights are mounted to the rear of the overhead guard and aimed behind the forklift. These are helpful for lighting the area behind the forklift, which is typically useful when travelling in reverse.

Low Profile Rear Work Light – A narrower work light is mounted on the rear overhead guard of the forklift and is typically mounted within the confines of the overhead guard to better protect it from damage.

Rear Combination Lights – This option rovides additional indicators on the rear overhead guard of the forklift. This typically includes back-up lights, stop/tail lights, and turn signal lights.

Specialty Lights

Strobe Lights – Strobe lights intermittently flash and are designed to help alert pedestrians and other operators of the forklift’s presence. They came in many different colors such as blue, red, amber, and clear and can also be mounted in different locations depending on the model.

Blue Spot Lights – Blue spot lights are usually mounted on the overhead guard of the forklift and aimed down at the ground in front of or behind the forklift. The distance the light is aimed away is up to the customer to determine based on the application. These lights are designed to help alert pedestrians and other operators of the forklift’s presence. In general, these can be more useful when entering and exiting aisles where the forklift and other lights may not be visible and where the color of the light stands out in the given environment. Also available in other configurations such as key-activated, travel direction-activated, and in different colors such as red.

Red Zone Light – These lights are mounted on the left and right side of the overhead guard and aimed at the ground by the customer, similar to the spot lights. They shine a red strip of light at the ground that is designed to alert operators and pedestrians to the forklift’s presence. In general, these can be more effective where the light stands out in the given environment.

Activation Types

Key On, Headlights On – The headlights are wired to the key switch and will turn on when the key switch is turned on. This is a helpful time saver for when headlights are frequently used such as when loading and unloading trailers.

Key Off, Headlights Off – Similar to the key on lights, this option only turns off the headlights when the truck is turned off. This is helpful to reduce amp draw on the battery. Leaving the lights on for a prolonged period of time can drain the battery to the point that the forklift will not start.

Key On, Key Off Lights – This option will automatically turn on all associated lights when the key is turned and will turn them all off when the forklift is turned off. The lights associated with this option may vary, contact your local, authorized Toyota dealer for more information based on your configuration.

Auto Lights Off (Oil Pressure) – Lights are turned off on the forklift automatically when the oil pressure reaches a predetermined level after the forklift is turned off. This ensures the lights are turned off even if the key is turned on, but the engine has not been started.

This list contains just a few of the options available today. Toyota is working to constantly develop new, innovative options and our team of expert engineers can even design custom solutions to work for you through our Toyota Special Design Request process. Be sure to contact your local, authorized Toyota dealer for more information regarding what is available and for helpful advice on what may be best for your specific environment.

Posted by tfinco at 12/11/2019 4:15:00 AM
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