earthmoving · Equipment & asset finance
Forklift finance
A forklift is usually the easiest asset in a business to finance. We compare buying outright against a rental or lease where the machine is due for replacement every few years.
What is forklift finance?
Forklift finance is funding for a counterbalance, reach or all-terrain forklift, secured against the machine. Forklifts are among the most commonly financed assets in Australia because almost every warehouse, factory and yard needs one, and price points are low enough that most applications need very little paperwork.
Forklifts are bought on capacity, mast configuration and fuel type. Electric machines suit indoor warehousing and food handling where fumes are a problem; LPG and diesel counterbalance machines handle outdoor yards and rough surfaces; reach trucks work narrow aisles in racked warehouses. Getting the specification right matters more than the brand, because a machine that cannot reach your top beam level is worthless regardless of who made it.
Finance structure often comes down to how you think about the asset. If the forklift will be worked for eight or ten years, a chattel mortgage and outright ownership is usually cheapest. If it needs replacing every three to five years with maintenance included, an operating lease or rental keeps the cost as a single predictable monthly figure and hands the residual value risk to the lender.
Forklift finance at a glance
| Typical price range | $12,000 – $150,000 |
|---|---|
| Finance term | Up to 60 months |
| Useful life | About 10 years |
| New or used | Used electric and LPG counterbalance forklifts are widely available and financeable; new purchases are common where a warranty and service agreement matter. |
| Indicative rates (Chattel mortgage) | 6.9% – 14.5% p.a. · rate history |
| Finance structures | Chattel mortgage (recommended), Operating lease, Equipment loan, Finance lease |
How lenders assess forklift finance
Forklifts are a high-volume, well-understood asset, so most panel lenders will fund one on minimal documentation for an established ABN. Very low-value machines can fall under a lender’s minimum funding amount, in which case bundling with racking or other equipment on one contract helps. Electric machines are assessed with attention to battery age, as a replacement battery can be a third of the machine’s value. Ex-rental fleet units are common and acceptable. Operating leases and rentals are popular where the business wants the machine off balance sheet and maintained.
Before you buy
- On an electric forklift, test the battery under load and ask for its date code — battery replacement is the single biggest hidden cost.
- Match mast height and free lift to your racking and container work; a machine that cannot enter a container limits what you can do.
- Ask whether a service and maintenance agreement can be bundled into the rental or lease payment for a predictable monthly cost.
Commonly financed
Toyota 8FG25 and 8FBE · Crown RR and SC series · Linde H25 · Hyster H2.5FT · Komatsu FG25
Estimate forklift repayments
- Number of repayments
- 60
- Balloon at end of term
- $16,200
- Total interest (est.)
- $22,929
- Total repaid (est.)
- $103,929
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is forklift finance?
Forklift finance is a loan, lease or rental used to acquire a forklift, with the machine as security. Terms usually run 36 to 60 months, and structures range from a chattel mortgage where you own the machine to an operating lease where the lender does.
Forklift lease or buy?
Buying with a chattel mortgage suits a machine you will keep long term and want on your balance sheet with claimable depreciation. Leasing or renting suits businesses that replace forklifts on a cycle, want maintenance included, and prefer a fixed monthly operating cost.