How Much Should a Used Forklift Cost
The number one priority for any diligent and successful business and business owner is to minimize costs while improving the quality and value offered to customers. That is no exception for the material handling industry, in fact, it holds even truer if anything for this particular industry. The material handling industry forms the backbone of the economy and material handling businesses require a huge amount of capital to initiate and sustain the business operation. In such cases, in order to achieve operational efficiency and keep costs low, many material handling businesses opt for pre-owned and the used forklift.
As such, managers look to reduce costs from wherever they can in order to direct more funds to the core operations of the business. The key to success for material handling businesses lies in finding the balance between quality of services and the cost associated with them. Since the core operations of the business are to provide material handling services, therefore they need forklifts to achieve that.
However, forklifts are quite costly especially since OSHA regulations are now more stringent regarding safety than ever before. That is because they cost less than brand new forklifts (obviously) but also because a good pre-owned forklift can provide operational efficiency required without draining the bank account. Many used forklift trucks are sought after for this very reason, yet with the market expanding faster than it ever has before, the question arises; just how cost-effective are used forklifts?
That is what we shall be answering in the article, the true cost (and corresponding value) of used forklifts. Whether they are worth the investment and what is the best way to approach purchasing the forklift.
What Determines the Price of Used Forklifts?
In order to understand how much a used forklift (or any forklift for that matter) should cost, we need to understand what determines the price of the forklifts. A forklift is priced according to the following factors:
- The engine used by the forklift determines what the forklifts will cost. There are essentially two types of engines for a forklift; the electric and the combustion engine. The electric forklift runs on batteries whereas a combustion engine forklift runs on old fashioned diesel and petrol. Due to the varying specifications of the fuel and battery types, the forklift prices can range from $15,000 to $30,000.
- The second factor that determines the price of a forklift is the load lifting capacity. The more load a forklift is able to lift, the more it will cost. A 3,000 lbs forklift means the forklift can lift 3,000 lbs and would cost around $10,000.
- Furthermore, the type of forklift also determines the price. Types of forklifts include sit-down rider truck, reach truck, truck mounted forklifts, order picker, pallet jack or rough terrain forklifts.
- For used forklifts, trucks on sale, the duration for which the forklifts have been in service, how they have been used and how well maintained they are, are all factors determining the price. It is advisable to approach the purchase of a used one with the help of retailers such as Truck Forklifts so that you can benefit off their experience and wisdom of the machinery and the industry. Such retailers can also help you get a better price for the pre-owned forklift and estimate a better valuation for it.
Price Ranges of Used Forklifts
Considering the factors discussed above, the price ranges for used forklifts range from as low as $5,000 to as high as $25,000. The higher price bracket is for forklifts such as electric forklifts that can cost around $10,000 and are able to lift loads of 3,000 lbs. As the load lifting capability increases, so do the prices, which is why forklifts that can lift up to 5,000 lbs cost $15,000 to $20,000.
However, as a buyer of the forklifts, you must consider costs other than face cost (the cost to be paid up front). There are many other costs associated with a used one such as maintenance costs that arise in the long run. It is essential to ensure that the forklift you buy is in good condition and has not been in any accidents during its service.
The functional life of any forklift varies. Usually, it is around 10,000 to 12,000 working hours however accidents can reduce that drastically and if a forklift with reduced functional life is bought, the intrinsic costs incurred can skyrocket, costing you more in the long run than you will earn. If maintenance costs are accounted for over 5,000 to 6,000 working hours of the forklift, then the true cost of the used one is evident.
At the end of the day, considering all the factors involved will help you make a better decision regarding which used a forklift to purchase and how much it will cost you.