Used forklift inventory soars 28%

Despite ample financing and rental opportunities, the markets for forklifts and aerial equipment are flooded with used inventory. 

Many lenders are targeting the material handling sector as new equipment innovations, including battery-electric forklifts and autonomous machines, support e-commerce growth. In fact, the global lift equipment market is projected to grow 45.5% to $124 billion in 2032 from $85.2 billion in 2024, according to research firm Data Bridge Market Research.  

However, used lift equipment is becoming less attractive to many end users, posing challenges to dealers, Jim Ryan, equipment lease and finance manager at Sandhills Global, told Equipment Finance News.  

“There is just a ton being returned on the forklift side of things,” he said. “And everyone’s full as far as inventory goes — some of the lowest pricing that they’ve seen for cushion-tire forklifts and things like that, almost ever.” 

Steep depreciation curves are one challenge facing used lifts as more of them become electrified, Ryan said. 

“There’s no money there,” he said. “It costs you more to get rid of the lithium battery than it does the actual forklift. And there’s a lot of those that are out there.” 

Like the used truck market in recent years, used lift equipment “has to get flushed” as overcapacity persists, Ryan said. 

“We have to understand where we’re at on price,” he said. “We have to understand that things maybe aren’t worth what they used to be worth. And finding wholesale buyers, utilizing auction are going to be a big deal as well.” 

Used lift inventory increased year over year in every major category in August, according to Sandhills. 

Used aerial lifts 

• Inventory rose 4.2% YoY and 1.8% month over month; 
• Asking values dropped 6.7% YoY, but ticked up 0.3% MoM; and 
• Auction values increased 4.9% YoY and 0.6% MoM. 

Used forklifts  

• Inventory jumped 27.7% YoY, but fell 3.2% MoM; 
• Asking values declined 3.6% YoY and 0.6% MoM; and 
• Auction values dropped 6.1% YoY and 0.5% MoM. 

Used telehandlers 

• Inventory increased 21% YoY and 4.4% MoM; 
• Asking values dipped 3.4% YoY and 0.1% MoM; and 
• Auction values fell 3.7% YoY but rose 0.5% MoM.  

Used forklifts can be ‘treacherous territory’  

While finding a quality used forklift “can be treacherous territory if you don’t know what to look for,” buyers can still find “exceptional value,” Mike Hoskins, president of material handling equipment dealer Sun Equipment, said in a Sept. 23 blog post. 

Amid rising new equipment prices, a used forklift that’s been thoroughly inspected and maintained “can deliver 80% of a new machine’s performance at 40% to 50% of the cost,” he said. 

The difference between a smart purchase and an “expensive headache” often entails metrics unique to each operation, he said, including: 

• Capacity requirements; 
• Aisle-width requirements; 
• Maintenance records; 
• Performance testing in “actual working conditions”; 
• Battery condition; and 
• Total cost of ownership. 

Register here for the free Equipment Finance News webinar “High-priced used equipment inventory: The no-man’s land of equipment finance” set for Tuesday, Oct. 21, at 11 a.m. ET.