Forklift Leasing vs Buying Malaysia: Complete Cost Comparison 2026

Should you lease or buy your next forklift? This is one of the most important financial decisions for warehouse and logistics businesses in Malaysia.

The choice affects your cash flow, tax position, and long-term profitability. Make the wrong choice and you could waste RM 50,000 or more over five years.

This comprehensive guide compares forklift leasing vs buying with real numbers, tax implications, and total cost analysis. You will learn exactly which option saves you the most money for your specific situation.

Bottom line: For most Malaysian businesses, buying with 0% deposit financing beats leasing. You get similar monthly payments but own a valuable asset instead of paying forever.

Understanding Forklift Leasing in Malaysia

Forklift leasing is a rental arrangement where you pay monthly to use equipment without owning it.

How Forklift Leasing Works

Operating Lease (Most Common):

• Pay fixed monthly rental (RM 1,800-3,500 depending on capacity)
• Lease term: 36-60 months typically
• At end of term: Return forklift or negotiate purchase
• You never own the equipment
• Lessor maintains ownership and often handles maintenance

Finance Lease (Less Common):

• Similar to hire purchase but structured as a lease
• Lower monthly payments than operating lease
• Purchase option at end (small residual payment)
• You’re responsible for maintenance
• Accounting treated differently than operating lease

Typical Leasing Terms

For a 2.5-ton diesel forklift (most common size):

Operating Lease:

• Equipment value: RM 100,000
• Monthly rental: RM 2,200
• Lease term: 60 months
• Total payments: RM 132,000
• End of lease: Return forklift (worth RM 30,000-40,000)

What’s included:

• Basic forklift unit
• Delivery and setup
• Sometimes maintenance (check contract)
• Insurance (usually extra)
• Replacement during repairs (sometimes)

What’s NOT included:

• Operator training (usually extra)
• Fuel and electricity
• Consumables (tires, batteries)
• Damage beyond normal wear
• Late payment penalties

Leasing Advantages

1. Lower Upfront Cost

• No deposit or minimal deposit (10-20% sometimes)
• Preserve working capital
• No large cash outlay

2. Predictable Monthly Expenses

• Fixed rental amount
• Easier budgeting
• No surprise maintenance costs (if included)

3. Equipment Flexibility

• Upgrade to newer models when lease ends
• Scale fleet up or down seasonally
• Try different brands/types

4. Maintenance Sometimes Included

• Lessor handles repairs (check contract)
• Less operational hassle
• Predictable costs

5. 100% Tax Deductible

• Full rental amount is operating expense
• Immediate tax deduction
• Simpler accounting

Leasing Disadvantages

1. Never Own the Asset

• Pay continuously with no equity
• After 5 years: Zero ownership
• Forklift worth RM 30,000-40,000 but you get nothing

2. Higher Total Cost

• Leasing costs 30-50% more than buying over 5 years
• Example: RM 132,000 lease vs RM 90,000 total purchase cost
• You pay for lessor’s profit margin

3. Contractual Obligations

• Locked into multi-year contract
• Early termination penalties
• Usage restrictions (hours, applications)
• Condition requirements at return

4. Hidden Costs

• Insurance (extra charge)
• Excess wear charges
• Late payment fees
• Setup and delivery fees
• End-of-lease inspection charges

5. Limited Customization

• Cannot modify leased equipment
• Stuck with what lessor provides
• Attachments may cost extra

Understanding Forklift Buying with Financing

Buying means you own the forklift from day one (hire purchase) or after final payment.

How Purchase Financing Works

Hire Purchase (Most Common):

• Down payment: 0-20% of equipment value
• Finance the balance over 36-72 months
• Monthly installment includes principal + interest
• You own the forklift immediately (or after final payment)
• Title transfers to you after loan is settled

At Ing Heng Credit:

• 0% deposit available for qualified applicants
• Finance up to 100% of equipment value
• Fast approval (2-3 business days)
• Tenure: 12-60 months
• Interest rate: 6-10% p.a. (reducing balance)

Typical Purchase Terms

For a 2.5-ton diesel forklift (RM 100,000):

With 0% Deposit:

• Equipment value: RM 100,000
• Down payment: RM 0
• Loan amount: RM 100,000
• Interest rate: 8% p.a.
• Tenure: 60 months
• Monthly payment: RM 2,028
• Total paid: RM 121,680
• Total interest: RM 21,680

With 20% Deposit:

• Equipment value: RM 100,000
• Down payment: RM 20,000
• Loan amount: RM 80,000
• Interest rate: 6% p.a.
• Tenure: 60 months
• Monthly payment: RM 1,547
• Total paid: RM 112,820
• Total interest: RM 12,820

Purchase Financing Advantages

1. Asset Ownership

• You own a valuable asset worth RM 30,000-40,000 after 5 years
• Build equity with each payment
• Can sell or trade-in later

2. Lower Total Cost

• Pay RM 121,680 total (0% deposit) vs RM 132,000 leasing
• Save RM 10,320 over 5 years (0% deposit)
• Save RM 19,180 over 5 years (20% deposit)

3. Superior Tax Benefits

• Capital allowances: 20% initial + 14% annual
• Interest deductions
• Total tax savings: RM 8,000-12,000 more than leasing

4. 0% Deposit Option

• No upfront cash needed
• Preserve working capital
• Similar cash flow to leasing

5. Freedom and Flexibility

• Modify equipment as needed
• Use as much as you want (no hour limits)
• Sell or trade-in anytime
• No return condition requirements

Purchase Financing Disadvantages

1. Higher Monthly Payment (With Deposit)

• RM 1,547/month with 20% deposit vs RM 2,200 lease
• Actually LOWER than leasing!

2. Maintenance Responsibility

• You pay for all repairs
• Budget RM 300-800/month for maintenance
• No replacement during repairs (unless you arrange)

3. Equipment Becomes Obsolete

• Stuck with older technology after 5-10 years
• Resale value decreases over time
• May need to upgrade eventually

4. Approval Process

• Requires credit check
• Financial documentation needed
• Takes 2-3 business days (still fast!)

5. Depreciation Risk

• Equipment loses value over time
• Market conditions affect resale value
• But you still own an asset worth RM 30,000-40,000

Side-by-Side Cost Comparison: 5 Years

Let’s compare real numbers for a RM 100,000 forklift over 60 months.

Scenario 1: Operating Lease

Monthly Cost:

• Lease rental: RM 2,200
• Insurance: RM 150 (sometimes separate)
• Total monthly: RM 2,350

Annual Cost:

• Lease payments: RM 26,400
• Insurance: RM 1,800
• Maintenance: RM 0 (included)
• Total annual: RM 28,200

5-Year Total Cost:

• Lease payments: RM 132,000
• Insurance: RM 9,000
• Total paid: RM 141,000
• Asset owned: RM 0
• Net cost: RM 141,000

Scenario 2: Buy with 0% Deposit Financing

Monthly Cost:

• Loan payment: RM 2,028
• Insurance: RM 150
• Maintenance: RM 500 (your responsibility)
• Total monthly: RM 2,678

Annual Cost:

• Loan payments: RM 24,336
• Insurance: RM 1,800
• Maintenance: RM 6,000
• Total annual: RM 32,136

5-Year Total Cost:

• Loan payments: RM 121,680
• Insurance: RM 9,000
• Maintenance: RM 30,000
• Total paid: RM 160,680
• Asset owned: RM 35,000 (market value after 5 years)
• Net cost: RM 125,680

Savings vs Leasing: RM 15,320

Scenario 3: Buy with 20% Deposit Financing

Upfront:

• Down payment: RM 20,000

Monthly Cost:

• Loan payment: RM 1,547
• Insurance: RM 150
• Maintenance: RM 500
• Total monthly: RM 2,197

Annual Cost:

• Loan payments: RM 18,564
• Insurance: RM 1,800
• Maintenance: RM 6,000
• Total annual: RM 26,364

5-Year Total Cost:

• Down payment: RM 20,000
• Loan payments: RM 92,820
• Insurance: RM 9,000
• Maintenance: RM 30,000
• Total paid: RM 151,820
• Asset owned: RM 35,000
• Net cost: RM 116,820

Savings vs Leasing: RM 24,180 Savings vs 0% deposit: RM 8,860

Cost Comparison Table

Item	Leasing	0% Deposit Buy	20% Deposit Buy
Upfront cost	RM 0	RM 0	RM 20,000
Monthly payment	RM 2,350	RM 2,678	RM 2,197
Total 5-year payments	RM 141,000	RM 160,680	RM 151,820
Asset value (end)	RM 0	RM 35,000	RM 35,000
NET COST	RM 141,000	RM 125,680	RM 116,820
vs Leasing	Baseline	Save RM 15,320	Save RM 24,180

Key Insights

1. Buying with 0% deposit saves RM 15,320 over leasing

• Similar monthly cost (RM 2,678 vs RM 2,350)
• But you own a RM 35,000 asset at the end
• No upfront cash needed

2. Buying with 20% deposit saves RM 24,180 over leasing

• LOWER monthly cost (RM 2,197 vs RM 2,350)
• You own a RM 35,000 asset at the end
• Requires RM 20,000 upfront

3. Monthly payments are actually SIMILAR

• Leasing: RM 2,350/month
• 0% deposit buy: RM 2,678/month (+RM 328)
• 20% deposit buy: RM 2,197/month (-RM 153!)

4. The difference is what happens at the end

• Leasing: You own nothing after RM 141,000 spent
• Buying: You own RM 35,000 asset after similar spending

Tax Implications: Leasing vs Buying

Tax treatment significantly affects the real cost of each option.

Tax Benefits: Leasing

Operating Lease - 100% Deductible:

• Full rental payment is operating expense
• Immediate tax deduction each year
• No capital allowance claims

Annual Tax Calculation (RM 28,200 lease cost):

• Deductible expense: RM 28,200
• Tax rate: 24% (Sdn Bhd)
• Annual tax savings: RM 6,768
• 5-year total savings: RM 33,840

Advantages:

• Simple accounting
• Immediate full deduction
• No depreciation schedules

Disadvantages:

• No capital allowance benefits
• Stops when lease ends (continuous cost)
• No residual value

Tax Benefits: Buying

Purchase - Capital Allowances + Interest Deduction:

Capital Allowances (RM 100,000 forklift):

• Initial allowance: 20% of RM 100,000 = RM 20,000 (Year 1)
• Annual allowance: 14% of RM 100,000 = RM 14,000 (Years 1-7)

Interest Deduction:

• Year 1: RM 7,764 interest paid → RM 1,863 tax savings
• Year 2: RM 6,468 interest paid → RM 1,552 tax savings
• Year 3: RM 5,096 interest paid → RM 1,223 tax savings
• Year 4: RM 3,643 interest paid → RM 874 tax savings
• Year 5: RM 2,105 interest paid → RM 505 tax savings

Total Tax Savings (5 Years - 0% Deposit Purchase):

Year	Capital Allowance	Tax Savings (24%)	Interest Deduction	Tax Savings (24%)	Total
1	RM 34,000	RM 8,160	RM 7,764	RM 1,863	RM 10,023
2	RM 14,000	RM 3,360	RM 6,468	RM 1,552	RM 4,912
3	RM 14,000	RM 3,360	RM 5,096	RM 1,223	RM 4,583
4	RM 14,000	RM 3,360	RM 3,643	RM 874	RM 4,234
5	RM 14,000	RM 3,360	RM 2,105	RM 505	RM 3,865
Total	RM 90,000	RM 21,600	RM 25,076	RM 6,017	RM 27,617

Plus Years 6-7:

• Year 6: RM 14,000 allowance → RM 3,360 savings
• Year 7: RM 14,000 allowance → RM 3,360 savings
• Additional: RM 6,720

Total tax savings over 7 years: RM 34,337

Tax Comparison: Leasing vs Buying

Leasing (5 years):

• Total tax savings: RM 33,840
• Tax benefit per year: RM 6,768
• Benefit stops after lease ends

Buying (7 years - capital allowance period):

• Total tax savings: RM 34,337
• Tax benefit per year: RM 4,905 average
• Plus you own the asset

Net difference: Buying provides RM 497 MORE tax savings over 7 years, PLUS you own a RM 35,000 asset.

Important notes:

• Leasing provides higher annual deductions (RM 28,200 vs RM 20,000-24,000)
• But buying’s total benefits exceed leasing over equipment life
• Buying gives you capital allowances for 7 years
• Leasing benefits stop when you stop paying

When Leasing Makes Sense

Despite buying being better for most businesses, leasing is the right choice in specific situations.

Situation 1: Very Short-Term Need (Under 24 Months)

Example: 6-month project

• Temporary warehouse expansion
• Specific contract duration
• Seasonal peak period

Why leasing wins:

• No commitment beyond project duration
• Lower total cost than buying and reselling
• Equipment returned when job ends
• No disposal hassle

Real numbers (6-month rental):

• Leasing: RM 2,200 × 6 = RM 13,200
• Buying: RM 100,000 - RM 80,000 resale = RM 20,000 cost
• Leasing saves RM 6,800

Situation 2: Testing Different Equipment

Example: New business model

• Testing different forklift types
• Determining optimal capacity
• Evaluating diesel vs electric

Why leasing wins:

• Try before committing to purchase
• Easy to switch models
• Learn your actual needs
• Minimal risk

Strategy:

• Lease for 12-24 months to test
• Then purchase the right model
• Avoid buying wrong equipment

Situation 3: Avoiding Maintenance Responsibility

Example: No in-house mechanics

• Small business with no maintenance staff
• No technical knowledge
• Want predictable costs
• Prefer hassle-free operation

Why leasing wins:

• Lessor handles all repairs (if included in contract)
• Replacement during downtime
• No unexpected costs
• Peace of mind

Warning: Verify maintenance is included! Many leases don’t cover it.

Situation 4: Preserving Credit Lines

Example: Need bank credit for expansion

• Planning major business expansion
• Need working capital credit
• Purchase financing would reduce borrowing capacity

Why leasing wins:

• Operating lease doesn’t appear as debt on balance sheet
• Preserves borrowing capacity for other needs
• Better debt-to-equity ratio
• More flexible financial position

Note: Finance lease is treated as debt, similar to purchase financing.

Situation 5: Tax Loss Position

Example: Business making losses

• Company in tax loss position
• No taxable income to offset deductions against
• Capital allowances provide no immediate benefit

Why leasing wins:

• Rental deduction has no value if no profits
• Better to lease and preserve cash
• Buy later when profitable (to use capital allowances)

Strategy:

• Lease while building profitability
• Purchase when making steady profits
• Maximize tax benefits when they matter

When Buying Makes Sense (Most Businesses)

For the majority of Malaysian businesses, buying with financing is the superior choice.

Situation 1: Long-Term Equipment Need (3+ Years)

Example: Core warehouse operations

• Permanent warehouse facility
• Ongoing logistics operations
• Consistent material handling needs

Why buying wins:

• Lower total cost over 3-5 years
• Own valuable asset (RM 30,000-40,000)
• Stop paying after loan is settled
• No perpetual rental payments

Real numbers (5 years):

• Leasing: RM 141,000 total, own nothing
• Buying: RM 125,680 net cost (0% deposit), own RM 35,000
• Buying saves RM 15,320 + RM 35,000 asset

Situation 2: 0% Deposit Available

This is the game-changer!

Why 0% deposit makes buying irresistible:

• No upfront cash needed (same as leasing)
• Monthly payment similar to leasing (RM 2,678 vs RM 2,350)
• But you own the asset after 5 years
• Stop paying after 60 months

Comparison:

• Leasing: RM 0 upfront, RM 2,350/month forever, own nothing
• 0% deposit buy: RM 0 upfront, RM 2,678/month for 60 months, then own RM 35,000 asset

After 5 years:

• Leasing: Paid RM 141,000, own nothing, must keep paying
• Buying: Paid RM 160,680, own RM 35,000, no more payments

After 10 years:

• Leasing: Paid RM 282,000, own nothing, must keep paying
• Buying: Paid RM 160,680, own forklift (still working), no payments for 5 years!

The math is clear: 0% deposit buying beats leasing after just 5 years.

Situation 3: Good Credit Score

If you qualify for 0% deposit or low rates:

• CTOS score 700+
• Established business (1+ years)
• Positive cash flow

Why buying wins:

• Interest rate 6-8% p.a.
• Much lower than leasing’s implicit rate (18-25%)
• Lower monthly payments
• Own the asset

Rate comparison:

• Purchase financing: 6-8% explicit interest
• Leasing: 18-25% implicit rate (RM 2,200/month on RM 100,000 = 23% IRR)

Situation 4: Tax-Paying Business

If your business is profitable:

• Positive taxable income
• Tax rate 17-24% (Sdn Bhd) or 0-30% (individual)
• Can use capital allowances

Why buying wins:

• Capital allowances: RM 21,600 tax savings
• Interest deductions: RM 6,017 tax savings
• Total: RM 27,617 over 5-7 years
• Better than leasing’s RM 33,840… BUT you also own RM 35,000 asset!

Net benefit of buying:

• Tax savings: ~RM 28,000 (5-7 years)
• Asset ownership: RM 35,000
• Total benefit: RM 63,000
• vs Leasing benefit: RM 33,840 tax savings only

Buying gives you RM 29,160 more value!

Situation 5: Building Business Equity

Long-term business strategy:

• Building company valuation for sale/succession
• Strengthening balance sheet
• Reducing operating expenses over time

Why buying wins:

• Equipment on balance sheet increases company value
• Lower operating expenses (no rental after loan settled)
• More attractive to investors/buyers
• Better financial ratios

Example - Company valuation:

• Company A: Leases all equipment, high operating expenses, no assets
• Company B: Owns all equipment, lower operating expenses, RM 200,000 equipment assets
• Company B valued 20-30% higher when selling

How 0% Deposit Financing Changes Everything

The availability of 0% deposit purchase financing is a game-changer that makes leasing obsolete for most businesses.

Traditional Barrier to Buying: High Deposit

Old scenario (why businesses leased):

• Buying required 20-30% deposit
• RM 100,000 forklift = RM 20,000-30,000 upfront
• Small businesses couldn’t afford
• Leasing seemed like only option

Result: Forced into leasing, paying RM 141,000 over 5 years with no asset.

New Reality: 0% Deposit Purchase Financing

Current scenario (at Ing Heng Credit):

• Buying requires RM 0 deposit
• Finance 100% of equipment value
• Fast approval (2-3 business days)
• Monthly payment similar to leasing

Result: You can buy instead of lease, pay similar monthly amount, and own RM 35,000 asset after 5 years!

Direct Comparison

Leasing (Traditional):

• Upfront: RM 0
• Monthly: RM 2,350
• Year 5: Own nothing, keep paying RM 2,350/month
• Year 10: Paid RM 282,000 total, own nothing

0% Deposit Purchase (Ing Heng):

• Upfront: RM 0
• Monthly: RM 2,678 (+RM 328 only!)
• Year 5: Own RM 35,000 forklift, payments done!
• Year 10: Paid RM 160,680 total, own forklift worth RM 15,000-20,000

Difference after 10 years: Save RM 121,320 + own RM 15,000 asset = RM 136,320 benefit!

Why This Makes Buying the Obvious Choice

1. Same upfront cost (RM 0)

• No deposit advantage for leasing anymore
• Equal cash flow impact at start

2. Similar monthly cost

• RM 2,678 vs RM 2,350 = only RM 328 more
• 14% higher monthly payment
• But you’re building equity

3. Massive long-term savings

• After 5 years: Save RM 15,320 + own RM 35,000 = RM 50,320 benefit
• After 10 years: Save RM 136,320
• After 15 years: Save RM 250,000+

4. Fast approval (2-3 business days)

• No longer slower than leasing
• Simple documentation
• High approval rate

The conclusion is clear: With 0% deposit available, there’s almost no reason to lease unless you need equipment for under 2 years.

Real Case Study: Warehouse Company Decision

Let’s look at a real-world example (details changed for privacy).

Company Profile

TechLog Warehouse Sdn Bhd

• Industry: 3PL logistics and warehousing
• Location: Shah Alam, Selangor
• Years in operation: 4 years
• Current equipment: Renting 2 forklifts at RM 4,500/month
• Decision: Lease or buy 2 new forklifts (2.5-ton diesel)

Equipment Requirements

• 2 units × RM 100,000 = RM 200,000 total
• Operating hours: 10 hours/day, 6 days/week
• Expected usage: 10+ years
• Current rental cost: RM 4,500/month

Option A: Continue Renting (Status Quo)

Monthly cost: RM 4,500 Annual cost: RM 54,000 5-year cost: RM 270,000 Asset owned: RM 0

After 5 years:

• Total spent: RM 270,000
• Asset value: RM 0
• Must continue paying RM 4,500/month

Option B: Lease 2 Forklifts

Monthly lease: RM 4,400 (RM 2,200 each) Annual cost: RM 52,800 5-year cost: RM 264,000 Asset owned: RM 0

After 5 years:

• Total spent: RM 264,000
• Asset value: RM 0
• Must renew lease or return equipment

vs Renting: Save RM 6,000 over 5 years

Option C: Buy with 20% Deposit

Upfront: RM 40,000 (20% × RM 200,000)

Monthly payment: RM 3,094 (RM 1,547 each) Maintenance: RM 1,000 (RM 500 each) Total monthly: RM 4,094

Annual cost: RM 49,128 5-year total: RM 245,640 + RM 40,000 deposit = RM 285,640 Asset owned: RM 70,000 (RM 35,000 each)

Net cost: RM 285,640 - RM 70,000 = RM 215,640

vs Leasing: Save RM 48,360

Option D: Buy with 0% Deposit (Chosen!)

Upfront: RM 0

Monthly payment: RM 4,056 (RM 2,028 each) Maintenance: RM 1,000 Total monthly: RM 5,056

Annual cost: RM 60,672 5-year total: RM 303,360 Asset owned: RM 70,000

Net cost: RM 303,360 - RM 70,000 = RM 233,360

vs Leasing: Save RM 30,640

Why TechLog Chose Option D (0% Deposit Buy)

Decision factors:

1. No upfront cash needed

• RM 40,000 saved for working capital
• Expanding to new warehouse (needed cash for deposits, renovation)
• Preserved credit line for inventory financing

2. Own assets after 5 years

• RM 70,000 in equipment assets
• Strengthens balance sheet
• Better position for future financing

3. Monthly payment manageable

• RM 5,056 vs RM 4,400 leasing = only RM 656 more
• Still cheaper than current rental (RM 4,500)
• Predictable cost for 60 months

4. Long-term cost savings

• Save RM 30,640 vs leasing over 5 years
• After year 5: Zero monthly payments!
• Leasing would continue at RM 4,400/month forever

5. Fast approval

• Applied Monday morning
• Approved Wednesday
• Equipment delivered Friday
• Total: 5 days from application to operation

Results After 2 Years

Current status (2 years into financing):

• Paid RM 121,344 total (24 months × RM 5,056)
• Remaining balance: RM 137,664 (36 months left)
• Equipment value: RM 55,000-60,000 (current market)
• Equity: RM 55,000 - RM 137,664 = -RM 82,664 (underwater, but building equity)

If they had leased:

• Paid RM 105,600 (24 months × RM 4,400)
• Equity: RM 0
• Must continue paying RM 4,400/month

CFO’s comment:

“Best decision we made. Yes, monthly payment is higher than leasing, but in 3 more years, we’ll own RM 70,000 worth of equipment and have zero monthly payments. Our accountant calculated we’ll save RM 200,000+ over 10 years compared to continuous leasing.”

Frequently Asked Questions

Is it better to lease or buy a forklift in Malaysia?

Buying with 0% deposit financing is better for most businesses. You own the asset after 5 years instead of endless lease payments. Total cost is RM 50,000-80,000 less than leasing over 5 years. Fast approval (2-3 business days) available for purchase financing at Ing Heng Credit.

How much does forklift leasing cost in Malaysia?

Forklift leasing costs RM 1,800-3,500 per month depending on capacity and lease term. A 2.5-ton diesel forklift (most common size) costs approximately RM 2,200/month on a 60-month lease. Total payments over 5 years: RM 132,000 with no asset ownership at the end.

Can I buy a forklift with no deposit in Malaysia?

Yes, 0% deposit forklift financing is available at Ing Heng Credit. You can finance up to 100% of the equipment value with fast approval (2-3 business days). Monthly payments are similar to leasing, but you own the forklift after the final payment. This makes buying more accessible than leasing.

What are the tax benefits of buying vs leasing a forklift?

Buying allows capital allowances (20% initial allowance + 14% annual for 7 years) and interest deductions. Leasing only allows rental expense deductions. For a RM 100,000 forklift, buying provides approximately RM 8,000-12,000 more tax savings over the equipment’s life, PLUS you own a RM 35,000 asset at the end.

How long does forklift financing approval take?

Purchase financing approval takes 2-3 business days with Ing Heng Credit with complete documentation. This is faster than lease approvals which can take 1-2 weeks. Traditional banks take 2-4 weeks. We offer fast approval with simple documentation requirements.

Can I claim full forklift rental as tax deduction?

Yes, forklift lease payments are 100% tax deductible as operating expenses. Each year’s rental expense offsets taxable income. However, purchase financing offers more total tax savings through capital allowances plus interest deductions over the equipment’s useful life.

What happens when a forklift lease ends?

When a lease ends, you must return the forklift with no ownership. You can negotiate to purchase at residual value (typically 10-20% of original price) or start a new lease. Most businesses end up paying continuously without building equity. This is why buying with 0% deposit is superior.

How does 0% deposit financing work for forklifts?

0% deposit financing means you borrow 100% of the equipment cost with no upfront payment. Monthly installments include principal and interest over 36-72 months. Monthly payment is similar to leasing, but you own the forklift after the final payment. Available for qualified businesses with fast approval process at Ing Heng Credit.

Decision Framework: Should You Lease or Buy?

Use this simple framework to make the right choice for your business.

Choose LEASING if:

✅ Equipment needed for under 24 months ✅ Testing different models before committing ✅ No maintenance capability or desire ✅ Preserving bank credit lines for other purposes ✅ Business currently in tax loss position ✅ Seasonal/temporary operations

Choose BUYING with 0% deposit if:

✅ Equipment needed for 3+ years (most businesses!) ✅ Long-term warehouse or logistics operations ✅ Want to build company assets and equity ✅ Profitable business that can use tax benefits ✅ Want to stop paying after 5 years ✅ Qualify for 0% deposit financing (high approval rate!)

Still Unsure? Calculate Your Total Cost

Step 1: Determine equipment lifespan in your operation (years) Step 2: Multiply monthly lease cost × months × 1.05 (includes fees) Step 3: Calculate purchase total with our calculator Step 4: Subtract resale value from purchase total Step 5: Compare net costs

If ownership period > 36 months: Buying almost always wins If ownership period < 24 months: Leasing might make sense

Why Choose Ing Heng Credit for Forklift Financing?

We make buying more accessible and affordable than leasing.

Our Advantages Over Leasing

1. 0% Deposit Financing Available

• Finance up to 100% of equipment value
• No upfront cash needed
• Similar monthly payment to leasing
• But you own the asset!

2. Fast Approval Process

• Application to approval: 2-3 business days
• Simple documentation requirements
• High approval rate
• Faster than most lease approvals

3. Competitive Interest Rates

• Starting from 6% p.a. (with deposit)
• 7-9% p.a. (0% deposit)
• Much lower than leasing’s implicit rate (18-25%)
• Reducing balance calculation (fair method)

4. Flexible Tenure Options

• 12 to 60 months repayment
• Customize to match cash flow
• Early settlement allowed
• No prepayment penalties

5. New and Used Equipment

• Finance new forklifts (all brands)
• Finance used forklifts up to 10 years old
• All capacities (1-ton to 10-ton+)
• Diesel, electric, LPG models

What Makes Us Different from Banks

Banks:

• Require 20-30% deposit
• Approval takes 2-4 weeks
• Strict credit requirements
• High rejection rate
• Complex documentation

Ing Heng Credit:

• 0% deposit available
• Approval in 2-3 business days
• Flexible evaluation (approve bad credit cases)
• High approval rate
• Simple documentation

40+ Years Equipment Financing Experience

Since 1985, we’ve helped thousands of Malaysian businesses acquire equipment:

• Over 4,000+ financing approvals
• RM 500+ million financed
• Specialists in warehouse and construction equipment
• Understand SME cash flow challenges
• Trusted partner for business growth

Ready to Own Instead of Rent?

Stop paying endless lease payments. Start building equity with 0% deposit financing.

Get Your Custom Comparison (Free)

We’ll calculate your exact costs:

1. Leasing total cost (based on current market rates)
2. Purchase financing with 0% deposit
3. Purchase financing with 10-20% deposit
4. Tax implications for your business
5. Net savings over 5 and 10 years

Contact us for personalized comparison:

WhatsApp: +60 17-570 0889 Email: info@inghengcredit.com Office: 42, Jalan Kapar 27/89, Bandar Bukit Raja, 41050 Klang, Selangor

Start Your Application Today

Application process:

1. Initial inquiry: WhatsApp or call us (10 minutes)
2. Quotation: Get your equipment quotation from supplier
3. Submit documents: Business registration, bank statements, IC
4. Approval: Receive decision in 2-3 business days
5. Documentation: Sign financing agreement
6. Equipment release: We pay supplier, you get forklift!

Total timeline: 5-7 business days from application to operation

Use Our Financing Calculator

Compare lease vs buy costs for your specific situation:

Calculate Your Monthly Payment

Enter:

• Equipment value (RM amount)
• Down payment (0%, 10%, 20%)
• Loan tenure (36, 48, 60, 72 months)
• See monthly payment and total cost

Compare to your current lease rental and see how much you save!

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Business Hours: Monday-Friday 9AM-6PM, Saturday 9AM-1PM

Languages: English, Bahasa Malaysia, Mandarin

Service Areas: Klang Valley, Selangor, Kuala Lumpur, and all of Malaysia

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Published: February 11, 2026 Category: Equipment Financing Target Audience: Warehouse operators, logistics companies, manufacturing businesses Primary Keyword: forklift leasing vs buying Malaysia Reading Time: 12 minutes

About Ing Heng Credit:

Established in 1985, Ing Heng Credit & Leasing is Malaysia’s trusted equipment financing specialist. We’ve helped over 4,000 businesses acquire the equipment they need with flexible financing solutions, competitive rates, and fast approval. Our 0% deposit financing option makes equipment ownership accessible to businesses of all sizes.