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Tips For Buying Used Forklifts

buying, Forklifts July 19, 2017

If you are out looking at used forklifts to buy, there has never been a better time in the materials handling market.  There are plenty of bargains you can pick up, weather its a 2.5T Yale forklift or a 16T SMV Forklift, but as always there are some things you really need to be aware of when looking at used forklifts.

Warranty

Does it have warranty.  It use to be very common to buy a used forklift with no warranty.  Well these days its fair and reasonable to expect some comfort in knowing that if you buy a used forklift you won’t get it home and have the engine blow up in the first week.

Most businesses will offer a 30 or 90 day standard warranty, if they don’t bring it up, ask them.   We’ve also started to see 12 month warranties being offered on used equipment.

Most new forklift manufactures will offer a minimum 12 month /1200 hour warranty on a new forklift, so getting a 12 month warranty for a used forklift might seem fantastic.  But read the fine print, a lot of these warranty policies, are bought for a few hundred dollars.

The policies are generally very tight, and don’t really allow for much, and you might fine that you get stuck with additional expenses like freight.

Beware the Liquid Overhaul

A lot of forklift dealers will tell you its been overhauled.  It might look shiny with a new coat of paint, but pop the bonnet and take a look underneath.  If you can see a dirty engine with visible oil leaks, its had a liquid overhaul  Ask for service records, most forklift dealers won’t mind giving these out at all.  Take a look at the last 12 months, if you can see service and breakdown jobs, you know it’s been well maintained.

Shop it around

With the internet people have gotten a lot smarter, with 20 minutes work, you are able to compare pricing for most things on line.  Used forklifts are no different, take your time and look.  If you like a Hyster H2.50DX model that you’ve looked at, compare the pricing on line, if you are thinking  you got good value at $20 000, you might be in for a rude shock if you see them advertised online at for $10 500.

 

Buying Used Forklifts at auction

We see so many people burnt doing this, you think you can get a good deal at an Auction, and this really comes under point 3.  We see people spend 10 or 20 thousands more then what they should, find that the used forklift has a problem and then want to sell it, and can’t get a return.

If you are going to an auction to buy, make sure you do your homework before you get there.  Most auction houses will let you inspect the forklift and start it before you start to bid on it.

Used forklifts are just like use cars, there are plenty out there, sometimes you can buy a lemon.  The trick to buying value is to do your research, and make sure you are buying something that has been well maintained, with a little bit of warranty on it. You won’t go wrong.

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Two Ways To Finance Your Forklift

buying October 26, 2016

Forklift Finance

When the banking industry was deregulated, it opened up the Australian Finance Market to a lot of different options when it comes to how finance can be arranged for equipment, here we look at two of the most popular ways to finance your Forklift.

Finance Leasing

Features

  • Minimal capital outlay
  • Payments are fixed for the lease term
  • At the end of the lease term, the following options are available :
    • Extend the lease term
    • Trade in the forklift and lease a new forklift
    • Return the forklift. You may be responsible it there is shortfall between sale proceeds and the outstanding residual value amount
    • Make an offer to purchase the forklift for the residual value.

Benefits

  • A hedge against market fluctuations with interest rates fixed for the term of the lease
  • Ownership is optional
  • Leasing frees up capital which can be used to grow your business
  • Pay only for equipment use

Commercial Hire Purchase

Features 

  • For accounting and tax purposes you own the asset
  • Payments can be structured to suit a company cash flow
  • Generally repairs and maintenance is not included in the Commercial Hire Purchase.

Requirements

  • Balloon payments can be arranged at the expiration of the term and refinanced where required

Benefits

  • Business retains fund for working capital purposes.
  • Depreciation and interest costs can be claimed by the hirer which reduces tax payable on net profits.
  • You own the forklift on termination of the contract.

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Do you need to buy a forklift.

buying October 13, 2016

buying forklifts

If you have a business where you are moving products on a pallet, there is more than a fair chance you need a forklift to help you.  Whether you already have a forklift or are looking at getting one.  You might want to be looking at needing to buy a forklift.

How to buy Forklifts

These days there are plenty of forklift brands and models on the market.  When you go looking to buy forklifts, buyers will tend to focus more on the engine, transmission, mast, make and model then they do on how to buy forklift.

Once you narrow your decision down on what forklift you are going to buy. The next step is how to buy the forklift, and you have a few different choices.

Purchase outright

If your are lucky enough to have the capital sitting in your bank account.  You can purchase it outright.

Rent to Buy

This has become a very popular way to buy forklifts.  You are able to rent the forklift over a fixed period of time, with either a zero payout or a small payout figure at the end of term.  Usually the business renting the forklift is still responsible for maintenance by either paying for it as they go, or a preventative maintenance agreement, with the forklift dealer that they bought the forklift through.

Finance – Lease

This type of arrangement is very similar to the rent to buy scheme, but it is purely a finance arrangement with either a finance lending business or the bank.  The maintenance can be done by any reputable forklift or mechanical business.

Fully Maintained Operating Lease

A different version of a rental agreement, but it is usually done directly through the finance company where the forklift dealer will bill the finance company every month. The business that rents the forklift ring the forklift dealer directly to arrange maintenance issues when they arise.

Rental

Very similar to the FMOL arrangement above, The Business rents the forklift direct from a forklift dealer.  The forklift business will invoice the business renting the forklift directly,  and all maintenance requirements are done directly between the business renting the forklift and the forklift dealer.

If a business has a need or a requirement for a forklift, there are many different ways that you can buy a forklift, and there certainly are different advantages and disadvantages to any way you want to do it. The best thing to do with talk to your accountant first before making a decision on financing or leasing a forklift.  Then talk to your local forklift dealer about what options they can provide you.

New or Used forklifts are also something worth considering for any business, any of the above methods of buying forklifts can apply to new or used. But the older the forklift the more restricted you might be with what you can do.

A final tip, if you do decide to purchase it out right with your own capital, make sure you discuss any warranty that might apply.

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