It’s fair to say that the decision to buy a new forklift or repair an old one is a true bottom line issue. You need to consider outlays and tangible benefits for each option, and some obvious questions:
· Forklift repairs are always a good option, but do you need to upgrade?
· Realistically, how many years are left for your old forklift?
· Would a new forklift give you better operational results?
· Are you taking on more work, and need to increase capacity?
· Can you justify the outlay on a new purchase?
Bottom Line Logic
A word of advice at this stage – check your figures. Hard facts are better than theories any day, and you can also do some useful business planning in the process of making your decision. Some constructive number crunching can also show you better options and ways to achieve improved outcomes.
Let’s examine a few key considerations as well as the numbers behind them.
An old forklift can keep going for years, but forklift maintenance will be an ongoing issue, with associated costs. You can check your projected outlays based on prior costs. (The last 2-3 years are usually the best figures for a clear assessment of real forklift service and repair costs. You can also use your forklift maintenance schedule as a guide to future outlays.)
New Forklifts – Costs vs Benefits
A new forklift means an obvious outlay, but you also get more years of work, and the advantage of having one of the new generation of forklifts, which are far superior to their predecessors. A quick look at prices will pin down the numbers you need. (Suggestion – use a bandwidth of prices, higher and lower, to get an accurate budget figure for calculation.)
Other Options – Leasing
When considering repairs and purchasing, other acquisition options should also be examined. Would leasing a new forklift cover the outlay issues, and give you the capacity you need? This is a good workaround which can deliver fast, budget-positive results, but only if it fits your needs.
Capacity and Future Needs
When considering your options, it’s also important to examine your current and future operations requirements. Consider these questions:
· Do you need increased capacity? If you’re in warehousing, the odds are that you might need a new forklift anyway, as demand increases.
· Would a new forklift improve handling efficiency? Usually, it will. Bigger lift capacity means getting more done, and done faster.
· Can you do both? Can you repair the old forklift and purchase a new one? Obviously, the outlay question arises again with this option, but it’s a potentially productive option, especially if your old forklift is still under warranty and definitely has a few years left. You might also be able to extend the life of the old forklift simply because you’ve reduced its workload with your new acquisition.
Testing the Market and Getting Some Expert Advice
Another word of advice – Don’t make any commitment until you’re sure of your figures and business values. If you’re in Sydney, you can always talk to Aussie Forklift Repairs, about your needs. We’re a one stop shop for forklift servicing, and we sell and lease new and used forklifts. Contact us to check out our range of products and services, and give us a call on (02) 9679 8992.