Discover how to finance a used forklift in Australia with flexible options that suit your business. Learn about chattel mortgages, lease options, and key tips to save on your next equipment purchase.
Key Takeaways
- Used forklift prices: Most used forklifts sell for $12,000 to $30,000, depending on brand, condition, fuel type and hours of use.
- Loan interest rates: Rates for used forklift finance typically range from 7.5% to 12.5% p.a., influenced by your credit profile and the asset’s age.
- Finance options: The most common types include chattel mortgage, equipment lease, and rent-to-own, each with different tax and cash flow advantages.
- Fast approval: Some lenders offer approvals within 24–48 hours, especially for low-doc or asset-backed options.
- Tax incentives: Businesses may be able to claim instant asset write-offs up to $20,000 under temporary full expensing rules until 30 June 2025.
- Depreciation impact: Used forklifts tend to depreciate faster than new ones—important to consider when structuring loan terms to avoid negative equity.
- Pre-approval benefit: Getting finance pre-approved gives you stronger negotiating power when buying from a dealer or private seller.
Introduction
If you're in the market for a forklift but don’t want to stretch your cash flow, financing a used unit might be the ideal solution. Used forklifts can offer excellent value for money and are often readily available, especially as lead times for new equipment continue to blow out.
In this article, we walk you through what’s happening in the Australian forklift finance market in 2025, the types of finance available, current used pricing trends, and how to choose the right finance for your business. Whether you’re a tradie, a warehouse manager, or running a small logistics fleet—this guide is tailored to help you make an informed, cost-effective decision.
Why finance a used forklift?
Used forklifts offer great return on investment and, when financed strategically, can help your business scale without draining working capital. Benefits include:
- Keeping cash reserves free for operations, wages, or inventory
- Accessing higher-quality or better-featured machines than you could afford outright
- Spreading the cost over time while the forklift generates revenue
- Bundling extras like warranty, accessories or delivery into one monthly repayment
Used forklifts are also in demand across Australia due to long lead times for new units and rising equipment costs.
How much does a used forklift cost in Australia?
Average used forklift pricing in 2025:
- Electric 3-wheel forklift: $12,000–$20,000 – ideal for tight indoor spaces and warehouses
- LPG or petrol counterbalance forklift: $15,000–$25,000 – suited for indoor/outdoor general use
- Diesel rough terrain forklift: $25,000–$40,000 – best for outdoor and construction applications
- Reach truck: $18,000–$30,000 – for high-racking warehouse operations
Key factors that influence price include:
- Hours of use (units under 5,000 hours tend to retain better value)
- Brand reputation (Toyota, Crown, Hyster, etc.)
- Maintenance records and service history
- Age of the unit (under 10 years is preferred for financing)
Types of forklift finance available
Choosing the right finance structure depends on your tax position, cash flow and whether you want to own the forklift from the start or keep things flexible.
Chattel mortgage (most popular for ownership)
- You own the forklift outright from day one
- Interest and depreciation are tax-deductible
- GST on the purchase may be claimable upfront
- Suitable if you plan to keep the forklift long term
Equipment lease
- The lender owns the forklift and leases it to you
- Lower monthly repayments than a chattel mortgage
- Payments are tax-deductible as operating expenses
- End-of-term options include upgrading, purchasing or returning the equipment
Rent-to-own
- Suited for businesses needing flexibility without an upfront commitment
- Maintenance can be included depending on the lender
- You can choose to buy the forklift at the end of the term for a pre-agreed amount
- Ideal for short-term contracts or seasonal use
What lenders look for when financing used forklifts
Lenders assess used forklift finance differently from new equipment. Key factors they consider include:
- Business trading history (minimum 6–12 months preferred)
- Bank statement history and cash flow patterns
- Age and condition of the forklift (usually must be under 10 years old)
- Whether the forklift has strong resale value
- Purchase invoice or condition report from a reputable source
To improve your chances of fast approval, have these documents ready:
- Business ABN and photo ID
- 3–6 months of business bank statements
- Forklift quote or invoice
- Service report (especially for private sales)
Forklift finance trends in Australia
Here’s what’s shaping the forklift finance landscape this year:
- Long wait times for new machines: Many businesses are turning to the used market due to delivery delays on new forklifts (up to 16+ weeks in some cases)
- Fixed-rate demand: With the RBA cash rate sitting around 4.35%, many businesses are opting for fixed-rate loans to lock in predictable repayments
- Used forklift value retention: Diesel and LPG units under 5 years old are retaining 65–75% of their original value, making them more attractive to lenders
- Electric forklift incentives: Some finance providers offer lower rates for electric units to support sustainability targets and lower emissions
Tax benefits and depreciation strategy
Financing a used forklift can still offer strong tax benefits. In 2025:
- Temporary full expensing is available for eligible businesses purchasing assets under $20,000, including financed equipment, until 30 June 2025
- Chattel mortgages allow you to claim depreciation and interest over the loan period
- Lease payments are fully tax-deductible for operational leases
Used forklifts depreciate more rapidly than new ones, so match your loan term with the asset’s remaining lifespan to avoid being left with a loan balance that exceeds the resale value.
Financing from a dealer vs private sale
There are differences in financing used forklifts depending on where you buy them:
Buying from a licensed dealer
- Easier to finance, especially for newer or higher-value machines
- Usually includes warranty, inspection report, and a GST invoice
- Lenders are more comfortable financing these purchases
Buying from a private seller
- Financing is possible but may require extra documentation
- A forklift inspection or mechanic’s condition report may be required
- No warranty or dealer support
- You may not get a GST invoice, which can affect tax claims
If you do buy privately, make sure you perform a PPSR check to ensure there are no outstanding debts on the equipment.
Tips for getting approved quickly
- Get pre-approved before negotiating your forklift purchase
- Stick to major forklift brands with strong resale value
- Buy from a licensed dealer wherever possible
- Bundle delivery, attachments or maintenance into your loan
- Avoid financing forklifts older than 10 years
- Work with a broker or lender that specialises in used equipment finance
Used forklift finance checklist
Before you apply, make sure you’ve ticked off these steps to streamline approval and avoid delays:
- Get a written quote or invoice from the equipment seller
- Check the forklift's age and condition — ideally under 10 years and with a service log
- Confirm the asset has a serial number (important for secured loans)
- Gather key documents like your ABN, business bank statements, and any recent tax returns
- Compare at least two finance offers — or consider using a commercial finance broker
- Check for any eligible tax deductions (especially before EOFY)
Frequently asked questions
Can I finance a forklift if my business is under a year old?
Yes, some lenders offer low-doc or ABN-only loans for businesses trading for as little as 6 months, especially if your bank statements show healthy cash flow.
Can I get finance for a forklift bought privately?
Yes, but the process may take longer. You’ll likely need to provide a condition report and proof of ownership.
What is the typical loan term for a used forklift?
Most loans run between 2 and 5 years, depending on the forklift’s age and how long it’s expected to remain in service.
Can sole traders get forklift finance?
Yes, many lenders offer finance for sole traders and contractors, especially those with an ABN and regular income.
Can I include extras like delivery or accessories in the finance?
Yes, you can often bundle delivery, attachments, installation or extended warranties into the total loan amount.
Conclusion
Financing a used forklift in today’s Australian market is a smart way to access quality equipment without tying up cash. With used prices ranging from $12,000 to $30,000 and flexible finance options like chattel mortgage, leasing or rent-to-own, it’s never been easier to get the equipment your business needs to grow.
By understanding what lenders look for, leveraging tax incentives, and comparing dealer vs private sales, you can make a more informed and financially sound decision. The key is to choose the right finance structure for your needs—and act before tax incentives expire at the end of financial year.