Buying a machine to use and hire out

[Sid]

Thinking of buying a machine to use here but also hire out. Does anyone have a rule of thumb as to what cost per days against purchase cost or deprication?



Wearing parts are negliable, damage would be payable by hirer.

An example round here is dump trailers are £50/day for a 10 grand trailer.

 

[Dave W]

Plant hire firm I worked for had a rule of thumb of 1-2% of purchase price per week, i.e in 2 years it would pay for itself in theory.

Just to add to the thread, what insurance would you need to hire a machine out? Don't you need some kind of records for maintenance etc?

 

[Lincs Lass]

How many ham fisted numpties are going to end up driving your machine while on hire ,,how many will say they can drive it but the only experience theyve got has been one weekend helping their mates out ,,how many will service it every day and mores the point ,,how many will admit to any damage they cause ,,not the, well it wasnt me as is usually heard

 

[brynseiri]

If hire didn't pay, no one would do it, you can hire almost anything locally to me, but woe betide you if you fu#k something up, then you might as well have bought one than hired it, as the hire firms pull your pants down. You'd need public liability insurance, and a set of written T's and C's to be signed before customer takes delivery that ties in with your insurance, for example, you are hiring my dump trailer to be used as a dump trailer, not a mobile work platform, etc etc.

 

[ACEngineering]

Many contruction hire firms hire tipping skips that fit on pallet forks for about £50 a week some more than that. If you can get it its extremely good hire as I can sell the skips as low as £500 each band new including delivery so takes next no time to earn money back and zero maintenance.

 

[Pheasant Surprise]

Plant hire firm I worked for had a rule of thumb of 1-2% of purchase price per week, i.e in 2 years it would pay for itself in theory.

Just to add to the thread, what insurance would you need to hire a machine out? Don't you need some kind of records for maintenance etc?

That must vary quite a bit though, some simpler tools can have quite a high hire cost to purchases cost % ratio. A concrete bull float for example - dead simple, but costs about £50 a week to hire. To buy one costs around £250-£400 ish. So on balance quite a nice earner.

 

[Dave W]

That must vary quite a bit though, some simpler tools can have quite a high hire cost to purchases cost % ratio. A concrete bull float for example - dead simple, but costs about £50 a week to hire. To buy one costs around £250-£400 ish. So on balance quite a nice earner.

That was on larger plant diggers, dumpers, telehandler etc. hand and power tools obviously different costings

 

[ACEngineering]

While were on subject of hire cost.
A 7metre full agri spec telehandler with pallet forks only (customer has there own attachments)
What would a fair hire rate be over 6weeks? No driver just machine. Used for loading corn lorries mostly and other odd jobs not straw cart or muck.

 

[NH-James]

While were on subject of hire cost.
A 7metre full agri spec telehandler with pallet forks only (customer has there own attachments)
What would a fair hire rate be over 6weeks? No driver just machine. Used for loading corn lorries mostly and other odd jobs not straw cart or muck.

Local place is £240 pw for a new 531-70. Don't know how that pays! Same place charges £220 a week for a £4000 trailer

 

[d williams]

That must vary quite a bit though, some simpler tools can have quite a high hire cost to purchases cost % ratio. A concrete bull float for example - dead simple, but costs about £50 a week to hire. To buy one costs around £250-£400 ish. So on balance quite a nice earner.

Best paying plant/ machinery acrow props sent to site per week plus del and collection usually forget their on hire as such a low cost item pay for themselves in a matter of weeks one realised they don't need them off hire them a few are lost damaged need cleaning all chargeble

 

[ACEngineering]

Local place is £240 pw for a new 531-70. Don't know how that pays! Same place charges £220 a week for a £4000 trailer

Might be a construction spec? Mine will be staying in the shed at that price!