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Farm Machinery
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Tractor contract hire/leasing
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<blockquote data-quote="Leaping_Dear" data-source="post: 673380" data-attributes="member: 803"><p>It is really is a horses for courses situation.</p><p></p><p>We lease all of our vehicles because as many mentioned above it is a fixed cost. You know exactly what it will cost for the period you own it, lease it for the warranty period then you wont have any extras besides servicing which you can allocate for.</p><p></p><p>Out sourcing and sub contracting are now common place in all business facets. You'd be surprised how little large businesses actually do 'in house' these days because pay someone else to do it, know your cost and let them run the risk. As Bernie Ecclestone once put it 'if its floats, fu*ks or flies....rent it'.</p><p></p><p>I have observed that when the subject of contract hires come up on here many posters seem very skeptical about the concept, firstly it'd been around in farming for years. Contracting your land out is effectively the same thing and when it comes to machinery it is an idea which suits farming well. As machinery costs go up and with machinery reliability an ever discussed issue it makes it more attractive.</p><p></p><p>However I don't think it always the way forward for smaller family farms, but for contractors and farms with larger new fleets then it has to be considered. Ultimately let the accountants decides, if he's worth what he charges he'll work which suits your company best.</p></blockquote><p></p>
[QUOTE="Leaping_Dear, post: 673380, member: 803"] It is really is a horses for courses situation. We lease all of our vehicles because as many mentioned above it is a fixed cost. You know exactly what it will cost for the period you own it, lease it for the warranty period then you wont have any extras besides servicing which you can allocate for. Out sourcing and sub contracting are now common place in all business facets. You'd be surprised how little large businesses actually do 'in house' these days because pay someone else to do it, know your cost and let them run the risk. As Bernie Ecclestone once put it 'if its floats, fu*ks or flies....rent it'. I have observed that when the subject of contract hires come up on here many posters seem very skeptical about the concept, firstly it'd been around in farming for years. Contracting your land out is effectively the same thing and when it comes to machinery it is an idea which suits farming well. As machinery costs go up and with machinery reliability an ever discussed issue it makes it more attractive. However I don't think it always the way forward for smaller family farms, but for contractors and farms with larger new fleets then it has to be considered. Ultimately let the accountants decides, if he's worth what he charges he'll work which suits your company best. [/QUOTE]
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