Your forklift is down, orders are backing up, and the repair estimate just made this day a whole lot worse. Every hour of downtime is costing you money, but so is making the wrong decision about whether to fix or replace. How do you keep your business moving efficiently whilst also ensuring the decision you make now is the most cost-effective today and into the future? It's a tough call to invest in a new machine or pay to keep the old one alive...so we're taking the guesswork out of it.
My name's Pax Kowaliw and I've been around forklifts for over 40 years. Let my expertise in both forklift sales and running a forklift service and repairs business be your guide in making the correct decision for your organisation.
Read on to unpack plenty of great insights to help inform your decision-making process or jump directly to our FREE forklift repair vs replacement calculator. This tool can give you an instant analysis of your current situation and predict your costs over the next 12-months that will hopefully make this decision a little clearer for you.
What You'll Learn:
- FREE Repair vs Replace Calculator for instant cost comparisons
- Big Repair Bill Dilemma - How to logically assess repair vs replacement decisions
- When Repair Costs Become Untenable - Understanding application-specific cost thresholds
- How Soon Should Forklift Repairs Be Made - Safety implications and immediate action requirements
- Fleet Optimisation - Determining if you actually need every forklift in your fleet
- Forklift Lifespan Guidelines - The real truth about 10,000 hours and 10-year benchmarks
- Safety Implications - What frequent repairs mean for workplace safety
- IC vs Electric Comparison - Long-term cost benefits of upgrading to lithium electric
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Maintenance Planning - How proactive maintenance saves thousands in repairs
TL;DR - The Quick Decision Guide
Got a big forklift repair bill? Here's your 60-second decision framework:
✅ Safety First: If it's unsafe even after repair, replace immediately
✅ Commercial Viability: If repair cost > 50% of replacement value, replace
✅ Application Check: Harsh environments = shorter lifespan, standard warehouse = longer life
✅ Usage Benchmark: 1,000 hours per year is average - assess accordingly
✅ Fleet Necessity: Ask if you actually need this machine or can operate without it
✅ Future Planning: Lithium electric offers better long-term value than IC or lead acid
✅ Use Our FREE Calculator: Get instant cost comparisons for your specific situation
Bottom Line: Choose what aligns with your operational needs and budget reality.
When in doubt: Proactive maintenance saves thousands, but don't throw good money on a machine that's reached end of life.
How to Use the Calculator
The field descriptions below explain what each input means and how to estimate the numbers.
Repair Current Forklift
Forklift Age (years) – How old your forklift is right now.
Usage (hours per year) – About how many hours the forklift runs each year. For example, 4 hours a day × 5 days a week = roughly 1,000 hours per year.
Planned Maintenance Cost (per year) – What you spend on regular servicing - things like filters, oil, safety checks, and inspections.
Unplanned Repair Cost (per month) – Average cost of surprise fixes such as leaks, electrical faults, or worn tyres. Estimate a monthly average if it varies.
Downtime Hours (per month) – How many hours your forklift is unavailable due to breakdowns, servicing, or waiting for parts.
Cost of Downtime (per hour) – How much you lose every hour the forklift can’t be used - extra labour, slower picking, or renting another unit.
Current Resale Value – What your forklift could sell for today. You can check online listings or ask a dealer for a trade-in estimate.
Estimated Resale Value in 12 Months – What you think it’ll be worth a year from now if you keep using it. As a rough guide, older forklifts can lose 10–20% of their value each year.
Replace Forklift
Purchase Price of Replacement Unit – How much the new forklift costs right now. Use a quote or a dealer’s advertised price.
Trade-In Value of Existing Unit – What the dealer would offer for your current forklift as part of the trade-in.
Expected Lifespan of New Unit (years) – How long you expect the new forklift to last before it needs major repairs or replacement. Electric models often last 10+ years; LPG or diesel models may last 5–8.
Planned Maintenance Cost (per year) – What you expect to spend on servicing the new forklift each year. This is usually lower than for an older unit.
Expected Downtime (hours per month) – Estimated monthly downtime for the new forklift - often close to zero when it’s new.
Cost of Downtime (per hour) – Use the same number you entered for your current forklift so the comparison stays fair.
Finance Interest Rate (%) – If buying on finance or lease, enter your loan interest rate. If paying upfront, enter 0%.
Decision Buffer (%) – Your safety margin - how much cheaper the new option must be before you’d definitely switch. For example, if set to 10%, the new forklift’s total cost must be at least 10% lower to justify upgrading.
The Big Repair Bill Dilemma: What Now?
Trust me when I say, this is a common challenge our clients face. It can be a tough call to say goodbye to an old trustworthy forklift or invest in it, only to see it breakdown once again. There is a logical way to work through it though.
First, let's look at the repair bill itself. What is the nature of the repair? Is it just an expensive part, like a computer board or a battery? Or is it something more serious - degradation steel, something that's ultimately going to be end of life for the machine?
Here's the critical question: Is it safe? Even if a repair is completed, there's no guarantee the machine will be intrinsically safe afterwards. You can replace the wheel on the axle, but if the axle's bent and the chassis is twisted, it's still not going to be safe.
Then we start looking at the age of the machine and the commercial viability. Let me give you a recent example: we had a Crown walkie stacker, about 20 years old. You can buy one reconditioned for about $4,000. The brand new ones are about $18,000, but the repair bill was $8,000. Is it commercially viable for that repair to occur? Probably not in that instance.
The only caveat is if you have a very specific or unique machine for a specific application - a custom built forklift, a specialised all-directional, flame proof, or explosion proof forklift with huge lead times and very expensive costs. In those cases, it's probably easier and quicker to get the machine repaired.
Between the calculator results and your business goals, the best decision is the one that aligns with your operational needs and financial reality.
When Do Repair Costs Become Untenable?
There's no magic number for when repair costs become too much - it depends entirely on your application and usage patterns. What's excessive for one business might be completely normal for another.
Application matters. If you're operating in a harsh environment like a small goods provider with lots of brine and salt, you're dealing with a heavily corrosive environment where the machine will break down more frequently. That's expected. But if you're running a 200 to 300 square metre warehouse with low throughput and getting constant repair bills, that's a red flag.
Usage patterns tell the story. Our standard framework shows a single shift forklift should run approximately 1,000 hours per annum. For a five-year-old machine, you'd expect 5,000 hours total. If it's showing 10,000 hours, it's been doing double shift. At 15,000 hours, it's been running around the clock.
Once we determine your application and usage, we can assess whether a new machine is required or if you're better off with a secondhand replacement. For a medium application, you should be servicing every three to four months and doing 500 to 1,000 hours per annum.
The real test: We look at return on investment, go through a total cost of ownership model, and present a genuine solution based on your specific situation - not just what's in stock.
Follow this flowchart: Alongside the calculator results, this decision tree will guide you through the key considerations step-by-step.
How Soon Should Repairs Be Made to a Forklift Once Identified?
So you've decided after using the calculator that repairing the machine is the correct decision for your business. Now the question becomes: how soon should repairs be made to a forklift?
If you've been quoted for repairs and you're on the fence about timing, here's what you need to know about the cost of delaying action.
Critical repairs should be actioned immediately. If it's a safety concern, absolutely immediately.
Let's look at some common safety repair items. Take a standard counterbalance forklift - everyone loves talking about counterbalances. You've got four wheels: two drive tires, two steer tires. There's actually a wear limit on those wheels. If you're getting quoted for tires because you're on the wear limit, that means the structural integrity of the tire can be compromised and can cause catastrophic failure to the operability of the machine.
Same goes for your operator seat. If there's a tear or a chunk of your operator seat missing, according to Safe Work Australia, the structural integrity of the seat is compromised and therefore presents a safety risk to the operator. That should be addressed immediately.
Other immediate safety concerns include:
- Any oil leaks
- Short circuit wiring
- Any unusual smells
- Any braking system issues
The bottom line: Safety repairs aren't optional, and they're not something you can put off until next quarter. The cost of delaying could be catastrophic failure, workplace accidents, or regulatory penalties that far exceed the repair bill.
Ask Yourself: Do You Actually Need This Forklift in Your Fleet?
This is the fork in the road. As part of this process to repair or replace, you've got to ask yourself a question: Do you really need this forklift in your fleet? Could you operate without it?
First thing we look at is their operation and their time in motion. Some people just have forklifts for the sake of having forklifts. Is the item going into repair a key part of your operation? If the answer is yes, then definitely continue with the repairs.
If the machine needing repair is a 'back-up' unit, there is potential you could remove it from your fleet. You need to make sure you're not leaving your business exposed though.
If the machine is highly specialised to your operations - then it's best to keep the reserve unit in emergencies.
If you're talking about bread-and-butter items - a 1.8- or 2.5-ton counterbalance forklift, maybe a high-reach forklift up to seven and a half metres, or a walkie reach forklift - you could probably reduce the forklift count in those fleets down a bit to be a little leaner.
If you have the right forklift provider, they'll have something in their short-term rental fleet to get you out of trouble during any major repairs or machine downtime on your remaining equipment.
A real example from one of our clients who’s a large electrical contractor. They optimised their fleet by removing redundant machines. When their remaining machine went down for repair, we provided a short-term rental to keep them operating without the overhead of owning and maintain a whole machine just as a backup.
How Old Can a Forklift Be?
You'll often hear that 10,000 hours or roughly 10 years of service is the average lifetime for a forklift. Is that accurate? It's more complex than that.
The average working life of a forklift depends on the application. If the environment is harsh and hard (like a small goods producer), then the forklift could be toast after only 5,000 hours. There are some applications where machines are gone in 3 years because they're that corrosive and that hard.
On the flip side, you've got operators in different industries like e-commerce where you could probably get 10, maybe even 20,000 hours out of the machine because the application isn't as demanding. We had a pharmaceutical company that in seven years had only used the forklift for 3,000 hours.
The Real Benchmark
If we work on the average of 1,000 hours equals one year's worth of work - similar to 10,000-15,000km per annum on your motor vehicle - then you can benchmark accordingly.
Here’s an example - if the machine's 20 years old and only has 10,000 hours, it hasn't had a hard life. That machine will probably be good for another three to five years, depending on what you're using it for.
What to Look For
When assessing a used machine, check:
- Pull down the lift lever - does it lift on its own without having to rev the engine?
- Any physical damage to the rollover protection system or overhead guard?
- Oil leaks and general mechanical condition
- Does it go into forward and neutral properly?
The key: Know the history of the machine and gauge the application it's been used in.
Get an expert assessment from Spot On's certified technicians
What Are the Safety Implications of a Forklift Requiring More Frequent Repairs?
If you're now having to get forklift repairs two, three times a year or something like that, there needs to be a conversation soon. This forklift is probably nearing the end of its working life.
But it's a tricky question. What are the repairs that are being done? Are they minor? Are they major? Are they catastrophic? What is the application that it's in?
Context Matters
You could have a particular part of your application where repairs are expected. For instance, high reach forklifts may have constant repairs on their wheels because the concrete has a cut out of it or the adjustment lines go out, and there's constant knocking on the bearings, axles, and wheels. Does that mean the rest of the forklift is going to have a catastrophic failure? No. But we're aware of what those repairs are going to be, so that would be okay.
If it's constantly going through mud or construction sites and getting concrete dust and silica dust through the engine, you're likely going to be up for more repairs. It's probably something you need to look at in terms of replacing.
If you're in a standard warehouse - like a business park - and the machine's constantly breaking down, I'd be a little bit more concerned. I'd be like, "Okay, probably time to replace the machine and get something either a bit younger or a little bit more suited."
Real Client Example: Fleet Management Gone Wrong
We had a large grocery distribution company getting constant breakdowns and issues with their machines on what they said was a single shift plan. They didn't tell us the truth - they didn't tell us how many shifts the machine was actually working, or that they had increased their productivity.
Our solution: We increased the frequency of the maintenance to prevent that from happening and added additional equipment to the fleet to reduce the load and impact on the equipment.
The bottom line: Frequent repairs aren't just a cost issue - they're a safety red flag that needs immediate attention.
Big Joe lithium forklifts offer superior long-term value over IC models
How Do IC Forklifts Compare to Electric Models?
This is obviously a hot topic in the industry at the moment. If you're looking to upgrade, how do IC models compare to electric models in terms of lifespan and operational costs? Could electric be more cost effective?
First, let's define what we mean by electric. Are we talking about lead acid, or are we talking about lithium? If you're upgrading to lithium, absolutely cost effective. If you're talking about lead acid, probably not.
Operating Cost Breakdown
When we talk about operating costs, let's look at a standard service plan. We run 250/500/750/1000 hour service plans on machines.
Your 250 hour service (A-type service) on an IC machine is basically your oil filter and engine oil, plus checking over the machine.
Your 500 hour service (B-type service) would typically include checking spark plugs and air filter.
So an IC machine has: engine oil, engine oil filter, spark plugs, air filter, transmission oil - all these additional items you're adding to the service, plus labour costs.
If we look at what you're doing on an electric forklift: some degreaser and other consumables you would use in an IC machine. But it doesn't have an engine, it doesn't have an engine oil filter, coolant, or anything like that. A bit of hydraulic fluid, but both machines have hydraulic fluid, so that would be the same.
Your cost per service is going to be greater on an LPG machine than it will be for a battery electric machine, regardless if it's lead acid or lithium.
The Bottom Line
Long-term, electric will save you money. More things can go wrong with an IC engine too - it has more moving mechanical parts, which equals more risk of failure.
If you're considering an upgrade, lithium electric offers the best long-term value in terms of both operating costs and reliability.
How Essential Are Maintenance Plans for Keeping Your Forklifts Reliable?
So you've decided through the calculator that repair is more cost effective. How important is a good solid maintenance plan from now on to keep your forklift reliable?
If you can get ahead of the problems and prevent them from occurring through proper maintenance, you will save yourself not hundreds but thousands of dollars down the track. And not only can you do that, you can prevent catastrophic failure from your equipment and ensure the safety of your operators and your staff.
Proactive vs Reactive Maintenance
If we can identify that the battery is on the way out or the tires are about to go in the next three months, you can plan and prepare for that in your next budget and organise that replacement.
You won't have:
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The wheels falling off your machine
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The battery blowing up and having an incident
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Unexpected downtime in your productivity
Because you've already actioned that - you're not being reactive to it. You're not going to create downtime in your productivity of the machine and of your operation because we're now scheduling in the proactive preventative items that will contribute to any kind of catastrophic failure or downtime.
The bottom line: A solid maintenance plan isn't just about keeping your forklift running - it's about protecting your investment, your people, and your operations.
Making the Right Decision for Your Business
Ultimately, deciding whether to repair or replace comes down to balancing costs, safety, and operational needs. There's no one-size-fits-all answer, but here are the key takeaways from our discussion:
Key Decision Points:
• Commercial Viability: Look at what the machine owes you, what it's worth, and compare repair costs to replacement costs - our calculator helps answer these critical questions
• Safety First: Critical repairs should be actioned immediately - never compromise on safety when structural integrity is compromised
• Application Matters: Harsh environments mean shorter lifespans, while standard warehouse applications can extend machine life significantly
• Fleet Optimisation: Ask yourself if you actually need every machine in your fleet - backup units might be candidates for removal
• Age and Usage: Use the 1,000 hours per year benchmark, but remember a 20-year-old machine with only 10,000 hours hasn't had a hard life
• Maintenance Planning: Proactive maintenance saves thousands and prevents catastrophic failures - get ahead of problems before they occur
• Electric vs IC: Lithium electric offers better long-term value with lower operating costs and fewer moving parts to fail
The Bottom Line
Between the calculator results and your business goals, the best decision is the one that aligns with your operational needs and financial reality. Whether that's repair, replacement, or rental, you can feel confident when the needs of your business are put first.
Remember, this isn't just about getting a working machine - it's about protecting your investment, your people, and your operations. If you're in any doubt, simply consult with experts who can provide honest recommendations based on your specific situation.
