How to buy a forklift without getting gouged
By Christine Selvig • Bankrate.com

If you have any substantial inventory, you are likely to need a forklift to keep your products moving toward your customers.

Getting one is akin to buying a car, but it requires more than kicking the tires. For example -- are those pneumatic or cushion tires you're kicking? Don't know? Better do your homework.

A forklift's price will depend on the job you want it to do. Similar pieces of equipment can range in price from $3,000 to $20,000, depending on the age and condition of the machine.

Look at your business and how you expect to use the equipment. Investigate the manufacturers, their warranties and experience. Then buy your new forklift from a reputable, established dealer who will back up the sale with service.

Your forklift's 'job description'
The first assignment is to write out a job description for the new piece of equipment. Answering the following questions will help you define the job:

• How much weight will the machine be lifting?
• What are the physical dimensions of the typical load?
• How high will the load be lifted?
• Where will the forklift be used?
• How many hours a day will the machine be in use?

Research models
Knowing what you want the machine to do will make selecting the right forklift for the job easier. Although diesel and gasoline models are available, forklifts powered by electric batteries or liquid propane are the most commonly used. The eight general classes of forklifts are:

• Electric motor rider trucks
• Electric motor narrow aisle trucks
• Electric motor hand trucks
• Internal combustion engine trucks with cushion tires
• Internal combustion engine trucks with pneumatic tires
• Electric and internal combustion engine tractor
• Rough terrain forklift trucks
• Hand pallet trucks

Within each category, models are differentiated by load capacity, engine horsepower, travel speed, lift speed and height. A 5,000-pound, triple-stage, propane-fueled forklift with side-shift is the single most-commonly purchased model, according to John Bohmer, author of Forklifts 101 and a forklift pricing guide.

Get a tutor
Forklift salespeople routinely visit businesses to get a feel for the job that needs to be done and the people who will be doing it. The questions they ask will help them prepare a proposal for you. Ask for proposals from at least two, and preferably three, sales representatives.

One of the most important steps in the selection process is letting the person who will be operating the forklift try it out, according to Tim Haley, manager of marketing support and media for Nissan Forklift in Marengo, Ill.

There are almost as many used as new forklifts on the market. In fact, more people buy used forklifts than new, according to Bohmer, who is also president of Affordable Equipment, a West Palm Beach, Fla., forklift sales and service center. The decision to buy new or used should be based on how many hours a day the machine will be working, Bohmer says. The customary rule: If you use the equipment more than 10 hours a day, buy new.

If you plan to use the machine two or three hours a day, used will do. But proceed with caution when evaluating a used piece of equipment. Unlike cars, forklifts are aged by hours of use, not miles covered.

Two models -- same make, year and options -- can be priced very differently. The hours of use and the regularity and quality of service it's received will give you an idea of how a forklift will perform in the future. You might be tempted to opt for the immediate savings of the lower-priced model. Think again. One breakdown on a forklift can cost you $3,000 to $4,000 to repair.

Take a field trip
Because repairs are so pricey, whether you're looking for new or used, visit the dealerships before making your final decision. Inevitably, your forklift will need service. When that day comes, you don't want to be at the bottom of a long waiting list.

Check out the service departments. Questions to ask include:

• How many mechanics do they have on duty?
• How large is their parts inventory?
• Does the dealership offer a safety training program to meet the Occupational Safety and Health Administration's new requirements for forklift users?

The final chores
Finally, before signing on the dotted line:

• Compare warranties from different manufacturers and dealers.
• Ask the distributors for the names and numbers of their last three customers, and call them.

-- Posted: Dec. 27, 1999