Do forklifts hold their value?
Forklifts are a significant investment for any business, so understanding their long-term value is essential. Whether you’re buying new or used, resale value plays a critical role in determining the overall return on investment. But do forklifts hold their value over time? The answer depends on several factors, including the type of forklift, its age, usage, and maintenance history. Let’s explore how these factors influence a forklift’s resale value.
1. Type of Forklift
Different types of forklifts hold their value differently. Electric forklifts generally retain their value better than internal combustion (IC) forklifts. This is largely because electric models have lower maintenance costs and are in demand due to their environmentally friendly design and suitability for indoor operations. As more companies focus on sustainability, the demand for electric forklifts is likely to keep their resale value stable.
2. Age and Hours of Operation
Like most heavy equipment, forklifts experience depreciation over time. However, forklifts don’t depreciate solely based on age; hours of operation are a more critical factor. The more hours a forklift has been used, the less value it typically retains. A forklift that has clocked fewer hours but is older may still hold more value than a newer model that’s been heavily used. On average, a well-maintained forklift can retain a significant portion of its value within the first five years.
3. Maintenance and Condition
The condition of a forklift is a major determinant of its resale value. Well-maintained forklifts with regular servicing and a clear maintenance history will hold their value much better than those with inconsistent care or significant wear and tear. Buyers are willing to pay more for forklifts that are in good working order and come with service records showing consistent preventive maintenance.
4. Brand Reputation
Certain forklift brands are known for their durability and longevity, making them more attractive on the resale market. Brands like Toyota, Caterpillar, and Hyster have strong reputations for reliability, which can help their forklifts retain value better than lesser-known brands. Investing in a reputable brand often results in a higher resale price.
5. Market Demand
Market conditions also influence a forklift’s resale value. If there is strong demand for used forklifts, prices can remain high. Economic conditions, industry trends, and the availability of newer models can all impact demand. For instance, as businesses increasingly shift towards electric forklifts, their resale value is likely to stay higher than that of traditional IC forklifts.
Conclusion
Forklifts can hold their value well if they are of a reputable brand, properly maintained, and have low operating hours. While depreciation is inevitable, making smart choices—like opting for electric models, maintaining regular service, and choosing high-quality brands—can ensure your forklift retains a significant portion of its value. Double R Industrial can buy your used forklift and ever set up up with a certified pre-owned model. Whether you plan to upgrade or sell in the future, let us help you in this decision.