Contract Hire & Leasing – Your Options Explained Contract Hire & Leasing – Your Options Explained The decision of whether to hire or purchase the necessary machinery can be a daunting one. To help you make this decision, we’ve prepared this blog to help answer that question.
At Roger Miles Plant Sales Ltd , this month’s blog looks at the options you have when obtaining plant machinery for your building site. For more information, don’t hesitate to call us in Goole on 01405 869200 .
What Is An Operating Lease? This term is essentially a simple hire option for an asset. In this case, the asset is the plant machinery. With this, there is no obligation to purchase the asset at the end of the hire period. There is often no option to purchase at the end also.
Is Contract Hire An Operating Lease? To answer this, yes. Contract hire is another term for an operating lease. In this instance, it would be a business contract hire. This is as the lease agreement takes place for the purpose of business. To compare this, personal contract hire exists for individual use of an asset. An example of this would be renting a car on holiday.
Is Hiring Plant Better Than Purchasing? You may still be wondering if hiring plant is still a better option than buying the necessary machinery outright. Although it might be tempting to buy the machine outright, it’s a very expensive option. Especially when you factor in running and maintenance costs, the price will only increase.
Hiring the required plant, on the other hand, offers you much more flexibility. Not only does it present a lower cost. A reliable plant hire company makes the process easy to start and offers loads of convenience. You can also use the required equipment as and when you need to. It will also be well-maintained to a high standard.
How To Arrange Hired In Plant Insurance When taking out an operating lease on plant equipment, you will be responsible for arranging the correct insurance. This term is used for a policy that will cover the machine while it is leased by you. Not to worry, your plant hire company should advise you on the correct policy needed.
Contact Roger Miles Plant Sales LTD For more information about plant machinery hire, contact Roger Miles Plant Sales LTD. Call us in Goole on 01405 869200 . Alternatively, you can make an enquiry via our contact form .
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