With ongoing global supply chain issues leading to longer lead times for all types of new materials handling equipment, demand for our Used trucks is at an all-time high as buyers look to refurbished forklifts that can rely on to support their fleets during these challenging times.
“Given the selection of Used trucks we have available for immediate delivery, we are seeing a significant increase in the number of companies that opt for ‘blended’ fleets, a mix of new and used machines, to support them during the pandemic” says Stuart Reilly, TMHUK Rental & Used Director.
He continues, “For example, a customer with a requirement for 30 counterbalance trucks may take delivery of 25 new forklifts and, rather than waiting for the remaining five new trucks to be built and delivered, will prefer to obtain five used models straightaway”.
The strong demand for used equipment comes at a time when the number of second-life units available to rent or buy is down on previous years across the UK market.
Stuart Reilly explains why, “Most facilities where forklifts operate were considerably less active than normal for a period of 18 months or so at the height of the Covid pandemic crisis. As a result, many truck fleets that are now coming to the end of their primary term contract hire period have not been worked as hard as expected, so users are seeking to extend the length of their contract for an extra year or 18 months. Fewer returning trucks means a reduction in the number of machines available to enter the next phase of the ‘rental cycle’.”
Because around 80 per cent of all new forklifts are acquired on some form of contract rental agreement every manufacturer or dealer knows that almost every new truck ‘sold’ will eventually come back into the business when it reaches the end of its rental period. This allows manufacturers and dealers to plan accordingly.
But, the unique market conditions that have been created by the pandemic mean that many manufacturers and dealers now find that fewer trucks than expected are returning to be ‘re-worked’ and added to their used equipment or short term rental fleets.
Stuart explains, “Our aim is to help customers manage their forklift cost base effectively and if we can demonstrate that switching all or a percentage of the fleet to used trucks offers cost benefits without sacrificing productivity or safety, then customers are more than happy to embrace refurbished trucks into their fleet.”
Toyota Approved Used Trucks offer solution to on-going stock crisis
Stuart Reilly believes the current situation could take around two years to resolve and is a potentially significant problem for those manufacturers and dealers that lack scale and significant market share. Stuart explains, “Thankfully, because of the volume of new Toyota lift trucks that enter the market each year we have no used truck availability issues”.
Machines returning from these rental agreements are then refurbished to the highest standards at our Fleet Management Centre in Leicestershire, better known as our stock of Toyota Approved Used Trucks .
Trucks are fully inspected and any necessary repairs are carried out, including replacing all worn or defective parts - including tyres and lift chains. The trucks are fully valeted and repainted before being reassembled and safety tested.
Over 95 per cent of the new Toyota lift trucks that enter the European market are manufactured at factories in Sweden, France and Italy and all models are produced according to the principles laid out in the globally renowned Toyota Production System (TPS).
Throughout each truck’s life, we have 100 per cent visibility of all parts – including the engine and transmission – so the company knows the complete history of every machine that comes back into the business.
“Knowing the history of every truck and the fact that we only use Toyota components and parts during the refurbishment process, means that we can guarantee that our fully refurbished forklifts will give many years of efficient and productive service,” says Stuart Reilly
In last week’s blog, we explain how Toyota has adapted to the recent changes in the Used market to guarantee we always have extensive range of fully refurbished Approved Used trucks – including counterbalance trucks, reach trucks and stackers – available for immediate delivery.