With Contract Hire, fixed payments at reduced levels with or without servicing of the machinery can make equipment affordable over a predetermined operating period.
Hire, Hire Purchase, Lease or Contract Hire: they all have their benefits, so you should choose whichever option suits your business and needs best.
We do recommend that you should discuss this independently too and make sure you get sound advice from your accountant, company financial controller or even bank manager. They will all be pleased to help and give you options.
It’s important also to consider that you may be responsible for any maintenance or repairs due on your asset at end of term and through its life.
Always check the fine print and make sure you have had good advice and you’re not getting locked into a low annual working hours contract as these can be highly costly at the back end. Not only do they incur additional charges for extra hours of use, but there may be additional servicing costs incurred too.
Off-hire charges also need clarifying at the front end as replacing bent panels, worn blades and tyres can all be very costly at end of a term, especially if you haven’t budgeted for them.
It goes without saying that a fully encompassing insurance to cover all risks should always be taken out or put in place to cover your risk and the value of the asset.
Again seek sound advice and a professional representative to talk you through these pitfalls and loopholes or better still talk to one of our managers to get their help and assistance.
Contact us or see contract terms for more details.