Some of you may not be familiar with what a forklift exchange is and will be unaware that your current forklift can play a pivotal role in being able to fund a brand new forklift. The most clear and straightforward path when purchasing a new forklift is to sell your current vehicle and use the money you receive towards your future purchase. However, when buying from a forklift dealership, there’s also the option to part exchange your vehicle. With this in mind, we have detailed below:
- What is a forklift exchange?
- Benefits of a part exchange
- Part exchange forklift considerations
- Final points
What is A Forklift Exchange?
A forklift exchange is essentially an alternative method of trading your existing forklift in order to fund some of the cost of the new vehicle. The simplest example to demonstrate this would be if you were to own a used forklift worth £4000, and look to part exchange for a new forklift worth £20,000. With all things considered, and assuming the used forklift is true to its value, you can buy the new forklift for £16,000 from the dealership.
Forklift part exchange is an increasingly popular solution for vehicle buyers in today’s age however, if you’re not familiar with the process, you might be wondering why you would rather proceed with this solution as opposed to normally selling your forklift. If you are just looking to replace or upgrade the vehicle for a brand new one, then a forklift exchange can offer a range of savings and substantial benefits.
Benefits of A Part Exchange:
- Less cost for higher-spec equipment
There are numerous beneficial reasons as to why you should part exchange your forklift. As we have just mentioned, it can offer incredible savings and will allow you to purchase the newest vehicle with the highest specifications on the market for less!
- Can sell immediately
Another major benefit of a part exchange is that usually, when you decide to go through the process of selling your forklift truck, it can take a matter of days, weeks or even months (depending on your vehicle’s condition) in order to offload your equipment to an interested buyer. Clearly, if you are struggling to sell your vehicle, this can create production lags and inefficiencies for your business due to a lack of transportation equipment available. Consequently, if you choose to part exchange, it lets you immediately exchange your old forklift for a new one right there and then so that you can continue with your day-to-day operations
- No need to call a material recycling service
For some of you reading, you may be in a position where your forklift is very close to the end of its life cycle. As such, you may have started to consider the options on how to recycle your equipment or what material handling companies are available to help turn the forklift into scrap. With this, there is typically a cost implication that must be accounted for.
However, with a forklift exchange option, it means you don’t have to worry about disposing of your equipment no matter the condition it is in. Clearly, the better the condition, the more funding you are likely to receive, however, even if the condition of the forklift is poor, some forklift suppliers can salvage vital parts of the truck which can help reduce the price of a new forklift truck.
Part Exchange Forklift Considerations
When discussing the part exchange forklift considerations there are a some variables you should be aware of:
- Condition
If a used forklift is in pristine condition and is practically faultless, you can expect to receive a healthy sum to help fund a newer forklift. On the flip side, if a forklift is on the brink of being acceptable to operate, the amount you receive for a forklift exchange will be considerably less. The variables that relate to a forklift’s condition can consist of: scratches and dents, tyre health, body panels and the cab’s interior just to name a few.
- Millage
Anything over 10,000 hours on a forklift is generally considered high mileage. If this is based on eight hour workdays, a lifespan of 10,000 hours means that the forklift will last for about five years. Furthermore, a forklift with much higher mileage can, in some cases, suggest that the forklift has seen some road usage throughout its lifespan. Therefore, this could have an effect on how much you receive for your exchange forklift from the dealership.
- Age
Age of the equipment is yet another important factor to take into account. A forklift can easily be worth considerably less due to outdated technology and with innovation constantly evolving, there is every chance that the latest forklift parts may not be compatible with old forklifts. As a result, this can limit the demand for old parts from a forklift supplier’s perspective and as such, could mean you received less for your old forklift.
Final Points:
To conclude, we have listed some quick and simple routine checks you should enforce if you decide to opt for a part exchange service.
- Clean Your Vehicle
A well looked after forklift, while won’t necessarily increase its value, is always advised. This is because first impressions really do count. A forklift covered in dirt, or foul smells does not bode well when you are trying to get the best deal on your forklift. As such, give your vehicle a deep and thorough clean before you take it to the dealership.
- Key Documents
Make sure your forklift has all the necessary and key documents from when you first purchased it. This includes: the vehicle’s logbook, the original receipt of purchase from when you bought the vehicle, a valid MOT certificate, the keys to the machine, the original owner’s manual and a full-service history. Failure to have any of these can result in the failure of the exchange completely so always bear this in mind.