What Will Second Hand Diesel Forklift Trucks Be Worth In One Years’ Time?

It’s clear to see, the UK is falling out of love with diesel fast. The official new car sales figures show the collapse in public trust continues, with registrations of oil-burners plummeting to just 16% market-share in 2020, down from a quarter of all car sales in 2019 (car magazine,2019) . Motorists behaviour has changed almost instantaneously, the paradigm social shift happened suddenly and the market has certainly responded. In 2007, British motorists responded kindly to diesel when BMW pioneered the common-rail injection, revolutionising a positive association towards diesel. Sales of diesel cars soared from just 19% of the mix back in 2007 to a record high of 56% in 2011. But then ‘VW Diesel gate’ happened in 2015, poleaxing the fuel’s appeal almost overnight.

Diesel owners are still nervous about the aftermath of the emissions scandal which has damaged the industry beyond the car market. Fjord, the global innovation consulting, describes this behaviour as ‘liquid expectations’. This is when a customer experience seeps from one industry to another industry. It’s clear to see, the haunted customer experience created from the car market has seeped it’s way into the material handling industry. This new customer mind set has devalued diesel powered vehicles across the board

The red diesel ban announced in April 2020 budget has stripped forklift truck manufacturers of their super power too. Forklift Truck manufacturers now begin to wrestle with the diesel decline. Without a doubt, it can be said without any hesitation that the sales of forklifts will go up sharply all over the world in the forthcoming years, primarily because of the growing requirement but diesel will not be playing a part in this growth.

Interactive analysis (2020) predict that the fast development of Li-ion battery technology and the expansion in production will mean that by 2028 electric vehicles, predominantly powered by Li-ion batteries will occupy 70% of the forklift truck market. While diesel forklift trucks are expected to occupy less than 20% . On average, forklift trucks have a lifespan around 10-20 years depending on usage, so how much will your second hard diesel forklift truck be worth once your fleet is up for renewal? Probably, nothing or straight to the scrap yard. The significant decline in diesel car prices has pressed major concerns for the forklift truck industry, in one year’s time, diesel forklift trucks will begin their journey of a steep decline in residual value.

Already, In Europe, more than 80% of shipped forklift trucks were electrified in 2019 (Interactive analysis, 2020). The penetration rate for electrified forklift trucks will continue, but the strongest growth will be lithium. The advantages of li-on technology is undeniable, set to cause a huge disruption in the material handling market. Superior energy density, cycle life, efficiency, low maintenance, emission free running and shorter charging time are just a few benefits of lithium battery technology. Lithium batteries are the longest lasting power source on the market, with second life applications and recycling opportunities, Lithium sees the highest second hand value of all.

If you’re considering switching your fleet. We recommend you steer away from diesel forklift trucks. Not only will you experience a 300% price increase on fuel from April 2022, the residual value of your forklift trucks will see major decline too. At Forktruck Solutions we have a full fleet of affordable Lithium powered forklift trucks and material handling equipment which is not only good for the environment but a smart economic choice too– find out more today!

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