Net gains or false profits?
September 1st 2009

Used forklift sales are soaring. But Briggs says buyers need to know who they are dealing with and what they are buying – and offers some tips on how to go about it...

Many new forklifts reach the end of their first life with only six or seven thousand hours on the clock. Due to the quality and robust build, the truck will have many more productive years left in it: recently a farmer in East Anglia was still using a 40 year-old Cat Lift Truck! So what happens next? Many are finding their second life online.

While the new truck market is down 50% in 2009, sales of used equipment are steadily rising and one of the main drivers is the growth in buying online.

Recent research* indicates that three of the top four channels for choosing products and services are online - websites, email and search engines. The number of online truck auctions, including eBay, has exploded in 2009 and many of the leading forktruck suppliers now offer feature-rich web portals for buying used equipment. So why is buying used online such a popular option and what should the end user be aware of when buying online?

John Murphy, used equipment manager at Briggs Equipment, sheds some light: "Used trucks were once the poor relation in the market, but they are now seen as a credible value option. A few years ago a typical buyer of used equipment might have been the smaller company with small budgets. Now many larger organisations choose to invest in used trucks particularly if their application and usage patterns are light."

This year, Briggs has seen growing demand for quality used equipment resulting in one of its best trading months ever, having achieved sales in excess of £1million during May. Briggs has also launched a new live auction site for its dealer network across the UK and into Europe.

"There is a vast range of equipment online and the trucks can be available almost immediately," says Murphy. "Buying over the web can save a great deal of time, if you buy from the right site.

You don't have to drive hundreds of miles to view the kit and you don't have to spend lots of time on the phone, evaluating options. It's done at the click of a mouse, with easy access to all features and options on a single screen view." Buying used makes sense when cash flow is tight and end users are looking for the best value for their money. It is also a good approach for users who need a standby unit in their fleet.

"Buying from a company which has a dedicated on-site used equipment facility guarantees that the trucks are prepared to the highest standards," continues Murphy. "We have dedicated workshops where we fully inspect and conduct a major overhaul of the truck before it goes out. This means that customers get a truck that is next-to-new in terms of its performance, reliability and operating costs, while saving up to 35 per cent compared to the price of a new truck."

However, if you are buying online, there are some golden rules to watch out for whichever site you use.

i) Is the site run by a recognised brand or a known supplier?

ii) Does it cover the key information that you will need to make your decision including year of manufacture, hours of operation and features available.

The downside to buying online is that you can't actually see the truck 'in the flesh'. But Briggs reckons photography or video can be almost as good as the real thing. The firm says be sure that there are high resolution pictures of the truck you are interested in: Low resolution photos could hide a multitude of sins.

"When buying online it's important to consider who the seller is. How long has the seller been selling used equipment?" adds Murphy. "Briggs has been reselling used equipment for four decades and has expert advice for a wide range of applications.

"Then you need to consider the site itself. Is it honest and trustworthy? Does it have a privacy policy and are the terms and conditions clear? Does it give out the unique serial number of the machine? Is there a clearly published 'bricks and mortar' address and can you call a real human being if you need advice? This latter point is probably a decisive factor. The best sites are run by experienced people and, if you're in doubt, a quick phone call should be all you need to get advice to ensure you get the right truck for your needs."

Box text: What to look for when buying online

1. What warranty do suppliers offer? For example, at Briggs a full parts and labour warranty is included. Others may only offer a partial warranty on parts or labour.Warranties come in various grades up to the Briggs Gold Standard with up to 12 months coverage.

2. Before comparing final pricing on a deal consider whether you are getting like for like. For example, machine warranty level, battery size (and warranty!), machine age, serial number and hours used. All of these influence prices and have a huge effect on value for money.

3. Is the site operated by a known supplier? How much experience do they have of selling used equipment? Do they have the expertise and reputation to fulfil their warranty? And does the supplier have the resilience to be there in a twelve months or twelve years' time when you need them?

4. Are there clear pictures and/or video for you to view the truck from all aspects and angles? Or are they trying to cover up a big problem?

Box text: Thinking about buying used trucks?

Consider buying a used truck when:

The truck will be used for standard or normal working hours

The application does not justify the expenditure on new machinery

The operation is a light to medium application and not a high throughput one.

More articles from Briggs Equipment UK Ltd: