When to Rebuild Your Forklift vs. Buy a New One: Top Things to Consider
It’s not always easy to know when to purchase a new forklift or rebuild your current one. Equipment replacement is a large investment for your business, but machine rebuilds only make sense if your forklift meets certain conditions. In this article, we cover some key factors you should consider when deciding whether to rebuild or replace your current unit.
- Look at forklift age and usage
- Analyze all costs, expenses, and prices
- Monitor new technologies
- Think about your project requirements
- Calculate your forklift resale value
Look at forklift age and usage
No matter how seriously you take forklift maintenance, and how consistently you stick to a service plan, your machine will experience wear and tear, and breakdowns may increase as it gets older. Two of the most important factors to assess when it comes to deciding between machine rebuilds or equipment replacement is how old the unit is and how much it has been used. For example, if it is an older model and has 15,000 operating hours, then rebuilding it might not be worth it. You should consider the manufacturer’s recommended lifespan and compare it to your actual usage. If your forklift is approaching the end of its expected life, replacement might be a more cost effective option in the long run.
Analyze all costs, expenses, and prices
If your annual repair and forklift maintenance costs are consistently reaching into thousands or tens of thousands of dollars, then it’s time to make change. To determine whether to go the equipment replacement or machine rebuild route, you have to understand the price of each.
Rebuilding can seem like a cost effective solution initially, but it’s essential to factor in all associated expenses. Add up the price of replacement parts, labor, and potential downtime during the rebuilding process. Additionally, assess the long term costs of maintaining an aging machine versus investing in a new, more efficient model. In some cases, buying a machine may involve a higher upfront investment, but it could result in lower maintenance expenses and increased productivity over the machine’s lifespan.
In general, we recommend following the 50% rule—if the cost of rebuilding is more than 50% of the cost of a replacement, then you should buy new. For instance, if a full rebuild of your older forklift costs $18,000 and a new model costs about $35,000, then it makes more sense to replace it.
Monitor new technologies
The material handling industry is always changing, evolving, and advancing. The latest forklift models often include enhanced features, improved fuel efficiency, and better safety measures. If your existing machine lacks these advancements, replacing it with a modern alternative may provide long term benefits in terms of overall efficiency and cost savings compared to rebuilding.
Think about your specific projects
We suggest considering the unique requirements of your specific jobs and tasks. If your current forklift still meets performance expectations and project demands, a rebuild could be the better option. However, if your operation now requires greater capacity, improved efficiency, or specialized features, then upgrading to new equipment may be necessary to keep up and remain competitive.
Calculate your forklift’s resale value
Another aspect to factor in when deciding between forklift rebuild or replacement is the actual resale value of the existing equipment. Older models could have limited market value, making it challenging to recover costs through resale. On the other hand, newer forklifts tend to retain better value, potentially offsetting the initial price in the long run. Depending on the resale potential of your current machine, it might make sense to sell it and buy new instead of rebuilding.
When it comes to forklift rebuilds, new forklifts, or just protecting your investment through proper forklift maintenance, we can help! Contact our team to ask any questions you have, and we’ll assist you with making the best decisions possible for your business.
Contact Our Forklift Experts: https://jitny.com/contact