There are lots of compelling reasons to buy a used or refurbished forklift. For starters, it’s sustainable and cost-effective, and purchasing lead times can be much shorter. However, without the right due diligence, buying a preowned forklift opens you up to unnecessary risk.
In this article, we’ll share all the things to look for when buying a used forklift in the UK. Follow these steps, and you’ll avoid costly mistakes that can hurt your business.
Top 10 things to look for when buying a used forklift in the UK
Investing in your business is essential for driving productivity and growth. However, while buying second-hand can save you money, it can have some downsides if you don’t do your due diligence.
Continue reading to learn everything you need to check when purchasing a used forklift in the UK.
1. Condition and maintenance history
The typical lifespan of a forklift truck is around 10,000 to 20,000 hours. The lower end of the range equates to around 5-6 years of 8-hour daily operation. However, depending on the brand, condition, and maintenance history, the upper reaches of this estimate are more than possible.
A study by the Forklift Truck Association (FTA) highlights the importance of maintenance. They suggest a well-serviced forklift will easily last 10,000 to 12,000 hours, while a poorly maintained truck might last just 5,000 or 6,000 hours.
The disparity in operating hours here suggests that you need to look beyond hours of use when evaluating any used forklift truck. Any respectable used forklift checklist should contain the following:
- Look for machines with low hours of usage.
- Check the smoothness of the lifting mechanism.
- Examine mast, forks, tyres, and other essential components.
- Evaluate the machine for wear and tear, rust, and any damage.
- Seek comprehensive maintenance records.
As the FTA data suggests, you can tolerate relatively high hours of usage, such as 5,000 or 6,000, provided the machine has been well taken care of. Look at the overall picture when you evaluate a purchase.
2. Parts: cost and availability
Used forklifts are attractive to businesses due to their great prices. However, these machines typically have more hours of use, which makes them more likely to require repair during your period of ownership. You need to factor these costs into any decision you make to buy a used forklift.
Downtime is a productivity killer. Some estimates suggest that downtime due to unavailable parts costs UK businesses around £180 billion annually. If you buy a used forklift and it has problems, your whole operation can suffer.
Old or obscure forklift trucks can require parts that are out of production, challenging to find, or even prohibitively expensive. So, if you’re considering a second-hand forklift truck, take a look at the model’s market for replacement parts first. Research typical prices for common replacement parts like batteries or hydraulic seals. Then, look at how often parts like these need to be replaced over the lifetime of your forklift, get everything down on paper, and work out relative costs for new vs used.
One way to avoid dealing with obscure or out-of-production parts is to buy used forklifts from well-known brands like Toyota, Hyster, or Caterpillar. These big brands are committed to long-term part support, with many guaranteeing part availability for 10 years after a model is discontinued.
3. Long-term costs
The upfront purchase price is just one factor to consider when evaluating the overall costs of a forklift. You also have to think about ongoing maintenance and running costs. Additionally, as we’ve shared in an earlier section above, you must also consider the impact of downtime if your forklift breaks down regularly.
While second-hand trucks come with lower upfront costs, these figures can be misleading. Calculating the total cost of ownership (TCO) is essential when you’re evaluating any model over the long term. Here are some costs to consider when choosing a used forklift truck.
- If you’re interested in an Internal Combustion Engine forklift, you need to think about fuel costs.
- If you’re looking at electric forklifts, what is the battery life, and how much would a new battery cost?
- What are the costs and frequency of maintenance?
- How reliable is the model? What are the potential costs of any downtime?\
While industry estimates vary, it’s worth noting that electric forklift trucks can be somewhere in the region of 20% to 40% cheaper to maintain and service than IC machines.
4. Regulatory compliance
There are several documents that you should look out for when buying a secondhand forklift. Here’s what to check when purchasing a used forklift in the UK.
LOLER Certificate
A Lifting Operations and Lifting Equipment Regulations (LOLER) cert is a bit like an MOT for a car. It’s a legal requirement for all lifting equipment in the UK, with regulations requiring that all lifting machines are subject to a thorough evaluation at least once per year or more, depending on the item’s condition or use patterns.
CE Marking
Look out for a CE (Conformité Européenne) marking on any used forklift. This symbol signifies the product’s compliance with the essential health and safety requirements set forth in relevant EU directives, including the Machinery Directive. The CE marking has been mandatory for machinery sold in the EU since 1994.
Declaration of Conformity
The Declaration of Conformity (DoC) is related to the CE marking. It’s a formal document issued by the manufacturer or their authorised representative stating that the forklift complies with all relevant EU directives and regulations.
Identity plates and labels
Regulations dictate that identity plates and labels must be visible on machinery. Things that you should look out for are the presence of manufacturer, model, serial number, year of manufacture, and safe working load. These plates should form a crucial part of your used forklift checklist.
PUWER Compliance
We’ve touched upon the LOLER cert and requirements above. The PUWER (Provision and Use of Work Equipment Regulations) is a similar regulation that dictates regular maintenance and inspections. It also ensures that the equipment is suitable for intended use.
These five entries are essential things to check when buying a second-hand forklift in the UK. However, it’s worth asking your seller for maintenance and modification records where relevant.
5. Resale value
Another one of the best things to check when buying a second-hand forklift in the UK is the potential resale value of each model. When you buy a second-hand forklift, you’re protected from the sharpest level of depreciation, which occurs in the first few years after buying a new machine. If you can resell your truck, it brings down the total cost of ownership during the period when the forklift is active in your business.
If resale is a factor in your decision, consider purchasing well-known brands and models. When these forklift trucks are well maintained, they can hold resale value. In fact, research suggests that, for example, Toyota forklifts typically retain 58% of their value after 5 years, compared to the industry average of 47%
So, what factors affect resale value?
- Brand or manufacturer reputation.
- The popularity and versatility of each model.
- Overall condition and maintenance history.
- Any additional technological features and upgrades.
If potential resale is a factor for you, consult industry reports and current market trends to see which brands and models retain value.
6. Warranty and after-sales support
Check if the forklift comes with a warranty or after-sales support. New forklift trucks typically come with basic warranties that cover the machine until either a specified number of operational hours or a period of 12 months or more, whichever occurs first.
However, some manufacturers offer extended warranties for several years or warranties that cover powertrains, batteries, specific components, and even replacement parts.
When you’re evaluating any used forklift truck, inquire about whether there is any warranty available because that should factor into costs either way.
Another thing to think about is after-sales. While you might not be covered by a warranty, you could still get access to services such as maintenance, repairs, spare parts availability, and technical support. A reputable seller who provides good after-sales support can be beneficial if you encounter any issues with the used forklift after purchase.
In summary, some of the things you should look out for when choosing a second-hand forklift in the UK include:
- Is there any warranty left on the forklift? What does that remaining warranty cover?
- Are there options to extend that warranty?
- What do customers say about the seller’s after-sales support?
- Does the seller provide access to specialist technicians or service centres for your machine?
7. Tax considerations
The UK government provides several incentives for businesses that buy new forklifts. The primary tax breaks include:
Full expense:
Companies can claim 100% capital allowances on qualifying new plant and machinery investments, including new forklifts. This allows you to deduct the full cost of the new forklift from your taxable profits for the year you make your purchase, meaning you can potentially save up to 25p for every £1 spent.
Annual Investment Allowance (AIA):
The AIA provides 100% first-year relief for plant and machinery investments up to £1 million. It’s available for all businesses, including unincorporated businesses and most partnerships.
While these schemes are not available when purchasing a preowned forklift, you can claim back money through capital allowances via tax relief on the depreciation of the asset over time. Likewise, if the forklift doesn’t qualify for AIA, you can claim writing down allowances as part of your capital allowances. However, beware that the rate depends on whether the forklift is classified as a main rate or a special rate asset.
Additionally, if you’re VAT registered, you can usually reclaim the VAT on the purchase of a forklift, whether new or used. However, there are specific rules for second-hand goods that may apply, so run it by your accountant to get the most up-to-date information.
8. Government grants
Another one of the things to check when buying a second hand forklift in the UK is whether the machinery is eligible for grants. The UK government has a number of schemes that can benefit business owners. However, many of them are focused on incentivising the switch to low-emission machinery, which is why it’s essential to research the particulars.
Some of the schemes that are worth looking at include:
UK Shared Prosperity Fund Business Grants:
This scheme supports SMEs in investing in tangible assets, which can include forklifts.
Farming Equipment and Technology Fund (FETF) 2024:
While this scheme is aimed at agricultural operations, it can support the purchase of equipment to improve productivity.
Rural Business Development Grant Scheme (RBDGS):
This programme is focused on rural businesses, but it can provide help in purchasing broad machinery.
Of course, there are other grants that are awarded on a local level. Businesses should keep an eye out for schemes that provide capital for machinery or business development.
9. Battery condition
A study by the Forklift Battery Council found that battery-related issues account for 36% of all electric forklift downtime. This statistic underlines why battery condition and maintenance are two of the most important things to look for when buying a used forklift in the UK.
So, what are the signs you need to look for when running the rule of your forklift’s battery?
- How old is the battery?
- How many charge cycles has it completed?
- What is the capacity retention of the battery? Is it above 80%?
- Does the battery come with a maintenance history and watering records?
- Does the battery manufacturer offer support, warranties, or regeneration services?
With some regeneration services capable of extending battery life by around 30%, it’s something to factor into your overall decision.
10. The technology pipeline
Technologies like IoT, telematics, and automation are becoming increasingly prevalent in the warehouse and logistics space. As such, one of the most vital things to check when buying a second-hand forklift in the UK is how it will fit into this landscape.
Some of the trends you need to consider include:
- Telematics integration for fleet management.
- Advanced safety features like object detection systems.
- Compatibility with warehouse management systems.
- Potential for automation or semi-automation upgrades.
So, measure any investment against future trends and your business’s long-term objectives, including the relative merits of buying vs hiring your forklift.
Final thoughts
Our guide to buying a used forklift truck in the UK provides a thorough and comprehensive checklist of the core points you need to consider. While upfront costs will always be a factor, if you follow these ten points, you’ll get a machine that provides value for money through lower maintenance costs, increased uptime, and even potential resale value. If we are looking to purchase used forklifts, do get in touch with our teams in Leicestershire, Northamptonshire, Birmingham, Warwickshire, Nottinghamshire, Derbyshire, East Midlands, or West Midlands
