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Last Visited: 6/27/2009
With fiscal prudence uppermost on the agenda within every boardroom, John Maguire, sales and marketing director of Narrow Aisle Flexi - manufacturer of the Flexi range of articulated trucks - says that in the current climate it is particularly important that companies considering investing in fork lift trucks choose models with the best value "from cradle to grave".
In other words, trucks that are able to command a good resale value when they reach the end of their first, second or third life.
"When it comes to the purchasing decision, a truck's residual value - or RV - should be considered from the outset, particularly if the user is considering entering a lease rental package with its supplier," John Maguire explains.
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"I think far too many dealers in the UK have in the past ended up having to 'dispose' of more specialist trucks that come back to them at the end of a lease - they do know the potential income that a truck with a high RV can generate, but they often do not consider this at the time of purchase," says John Maguire.
Over the last five or so years, a thriving market for used Flexi trucks has developed, as John Maguire explains, "We have built up an efficient spare parts operation, which means that Flexis are very cost effective to refurbish.
Thanks to their inherent high build quality, Flexis are straightforward to maintain and our distributors are able to make healthy margins on used Flexis that they put back into the market on contract hire with maintenance packages.
"Such is the demand for used Flexis - both from users and within the 'trade' - that the resale value of a five-year-old Flexi truck in the European market is often over twice that of, say, US or French-built alternatives.
"Typically, a used and refurbished Flexi will be sold for in the region of 65% of its price when new," says John Maguire, who likens the Flexi brand's high resale value to that of classic sports cars - which are worth almost as much restored as they are when new.
John Maguire believes that, like their counterparts in the automotive sector, those fork lift truck dealers that cannot generate enough margin on used equipment resales to pay off the guaranteed RV in customer contract hire agreements will struggle in the current climate.
"We have sold more than 4,000 Flexi trucks through independent distributors worldwide and, in part, our continued success is due to the fact that our distributor partners realise that they can rely on the Flexi to achieve a good market value at the end of its first life," he concludes.