Contract hire, pcp, finance, which is best

[Richard 1234]

Yep. I have never looked into contract hire on machinery (arblease et al). Do you have an annual number of hours? Must be a hard business model for them. On a tractor you could have 1000 hours of amenity mowing or 1000 hours of heavy ploughing. Be interesting to know more.

 

 

Not sure on equipment as I've bought all my machines outright but vehicles I don't have that kind of money lying around for a new truck every 3-4 years.

I like new as no downtime and as it's a nice pickup it is a nice family car (well I think so!) on lease it is cheaper to lease than buy as you get a better price on the vehicle due to them bulk buying.

I'm guessing if it works anything like vans etc you must have some hours limit so they can value what's left at the end of term?

 

 

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[Johnnyboxer]

Most popular is Hire Purchase in the rural industry

[Mick Dempsey]

I do that lease/hire thing, then pay a couple of grand at the end to own it outright.

 

 

The bank always push those because they get commission I guess.

 

 

Honestly, I can look at these threads and the differing opinions till the cows come home and still be none the wiser.

[richy_B]

I do that lease/hire thing, then pay a couple of grand at the end to own it outright.

 

 

The bank always push those because they get commission I guess.

 

 

Honestly, I can look at these threads and the differing opinions till the cows come home and still be none the wiser.

I think you're right there. Confusion is often all that ensues! Atleast you can kid yourself you did the research and found the best option!

[Steve Bullman]

Well I'm none the wiser that's for sure.

 

My account thinks i should buy a new truck on contract hire but I'm just not sure. Who am I to argue though

 

 

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[kevinjohnsonmbe]

Well I'm none the wiser that's for sure.

 

My account thinks i should buy a new truck on contract hire but I'm just not sure. Who am I to argue though

 

 

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Only thing I'd add is, for each additional layer of admin / involvement of people or process in a transaction, there naturally follows the consequence that each layer is drawing £s and making their living off your transaction. Minimise the layers = minimise the blood suckers 😳

[benedmonds]

I can't get past the depreciation, let alone other costs in not buying outright..

 

According to the AA, The average new car will have a residual value of around 40% of its new price after three years or in other words will have lost around 60% of its value at an average of 20% per year.

I guess for you Steve it is a personal truck and you might look after it, but my employees and wife and kids to be honest, would make a new car look old in a matter of days...

 

A mechanically looked after motor should last at least 5-10 years before it starts falling apart and becomes a reliability problem..

 

I guess there is the argument that fleet purchasers get a good deal, but it makes more sense to me to buy at 3 or 5 years old when the majority of the depreciation is over... and as there are contract hire vehicles people are keeping for 3 years there should be a decent selection of vehicles..

[Rich Rule]

Well I'm none the wiser that's for sure.

 

My account thinks i should buy a new truck on contract hire but I'm just not sure. Who am I to argue though

 

 

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Buy or contract hire?

 

As I mentioned and others have, buying allows you to take advantage of your Annual Investment Allowance.

 

Contract hire is a different thing.

[Steve Bullman]

Contract hire, sorry.

 

I might just buy my current truck off myself

[Mick Dempsey]

Contract hire, sorry.

 

I might just buy my current truck off myself

 

That's what my accountant told me to do after 5 years, when it's effectively worthless.

 

Then when it's your personal property and you can sell it and keep the money personally.