Where’s the catch?

[Bald Rick]

Looking to hire a loadall rather than buy one through HP as we currently do.
For only £60/month more, we would get a brand new machine every 6 months based on changing it every 1000 hours with no service costs.
Obviously any major damage like a crumpled mudguard we would be liable for and there is a charge per mm of tyre wear but it does seem a no brainer.

Anyone doing this? Is there a catch somewhere we’ve missed?

 

[Nearly]

@Forever Fendt

 

[Sharpy]

Looking to hire a loadall rather than buy one through HP as we currently do.
For only £60/month more, we would get a brand new machine every 6 months based on changing it every 1000 hours with no service costs.
Obviously any major damage like a crumpled mudguard we would be liable for and there is a charge per mm of tyre wear but it does seem a no brainer.

Anyone doing this? Is there a catch somewhere we’ve missed?

Watch you don't get hammered by doing more than the 1000hrs per 6 month. A place near here had cat shovels sitting for 18months on full payments as they had ran them 24/7 instead whatever the bean counters had signed up to to "save money". So shovels costing more money were bought........
Also iirc if a beacon or similar got broken it had to be replaced with a genuine cat one and fitted by a cat fitter. So £300 ish for a beacon......
As for tyre wear if you do this buy another set of wheels and fit them the first day, refitting the originals as it leaves, otherwise you will get stung on "damage" necessitating a full set of new tyres at your expense.

 

[TripleSix]

Advantages are that if it dies you don't have to worry about it.

Hiring is more tax efficient too?

But if you had a new one within warranty that's the same thing?

Big companies and councils etc like hiring equipment because they've no budget for buying, tax advantages to hiring and it's fixed costs.

 

[mf7480]

£60/ month more than what?

 

[Exfarmer]

another question is, is the hired machine to the same spec, a lot of those are very basic building site spec.
Not to say you will get any more work out of top spec machine.
The hire companies of course buy these machines in large batches so can hire them cheaper.
If you know any hire companies may be worth talking to them about cost of purchasing new machine off them .

 

[Lincsman]

You need to work out the total costs over say 5 years, that £60 is £3600 at current rates, and the £60 could well be £100 in 18 months.

They are doing it on the basis they probably get a better discount than you (especially as you are not a cash buyer) and they currently have good demand for 6 month machines.

 

[The Son]

Interested to hear more my JCB 541-70 loadall is costing me around a £1000 per month doing 1300 hrs per year. Within that cost is a service contract, and enhanced warranty upto 6000hrs. I do a set of tyres every 1500-1800 hours, and I have factored in a residual value of £15k at 6000 hours.

I would very much like to hire rather than buy as I see it as a cost that will never go away so why own one, unfortunately I have not been able to find a hire deal that cam compete with ownership......yet!

 

[Against_the_grain]

Very keen deals through framfarmers atm for loader hire. We just brought newish last year but will consider this option next time as it's a cost that wont go away as previously mentioned.

 

[Muddyroads]

Been wondering the same when I replace the main tractor later this year. Anyone with knowledge or advice?

 

[cvx175]

Interested to hear more my JCB 541-70 loadall is costing me around a £1000 per month doing 1300 hrs per year. Within that cost is a service contract, and enhanced warranty upto 6000hrs. I do a set of tyres every 1500-1800 hours, and I have factored in a residual value of £15k at 6000 hours.

I would very much like to hire rather than buy as I see it as a cost that will never go away so why own one, unfortunately I have not been able to find a hire deal that cam compete with ownership......yet!

Tyres every 1800 hours? What are you doing to them? Merlo here had its original tyres replaced at 7800

 

[vantage]

Tyres every 1800 hours? What are you doing to them? Merlo here had its original tyres replaced at 7800

7800 hours! Wow! My manitou has consistently used a set every 2000-2500 hours, 12 k hours on it now. Artic steers apparently get 4-5k hours from a set, your tyres must have been extremely hard rubber.

 

[Will 1594]

Do they know your a dairy farmer / livestock farm. . What is the damage clause . And cleaning charge ? . If you accidentally damage it or never grease or clean it. LIKE some stock folk.

 

[Bald Rick]

£60/ month more than what?

More than our current HP on a TM320.
The TM is 2017 and already has 6500 hrs on it and probably needs changing as it's a key machine but is starting to demand more attention on top of routine 500 hr services

 

[pappuller]

More than our current HP on a TM320.
The TM is 2017 and already has 6500 hrs on it and probably needs changing as it's a key machine but is starting to demand more attention on top of routine 500 hr services

Dairy not far from here hires 5 tractors in on 12 month deals. I think on min 800hr basis circa £8/clock hr including service but not insurance. Who has priced your hire deal up ?
I know ashbrooks are big in the hire game.

 

[icanshootwell]

My Michelin tyres will do 5000 hrs no problems on the cat, I put it down to not having enough concrete.

 

[michael N123]

What’s the price for a 6 month old ex hire machine ?

 

[The Son]

Tyres every 1800 hours? What are you doing to them? Merlo here had its original tyres replaced at 7800

Longest I have got is 2000 hours from a set of vredesteins, michelins on the current machine look like they will struggle to get to 1800, and I swap them back to front at 1000 hours

 

[Blue.]

More than our current HP on a TM320.
The TM is 2017 and already has 6500 hrs on it and probably needs changing as it's a key machine but is starting to demand more attention on top of routine 500 hr services

Does it need to be a farm special?

Like me you run an equivalence to an American feedlot,my loaders very rarely leave the concrete,I don’t need a 6 speed gearbox and limited slip diffs etc...

 

[ollie989898]

If you are on concrete extensively those half way house tyres are surely better?