Plant machinery is an indispensable part of any building site. The decision of whether to hire or purchase the necessary machinery can be a daunting one, especially if you’re looking at a long job in which on-site convenience is at the top of your priorities.
To help you make the decision, we’ve prepared this handy blog that will compare hiring plant to buying it, as well as answer this common question: is contract hire an operating lease?
An operating lease is essentially a simple hire option for an asset (the asset in this case being plant machinery). There is no obligation to purchase the asset at the end of the hire period – and often there’s no option to, either.
In simple terms, an operating lease is the type of hiring option you can expect to encounter when leasing equipment from a plant hire company. The company retains ownership of the asset, while you pay a regular hire fee to make use of the asset over an agreed period.
In short, yes – contract hire is another term for an operating lease. In this case, it would be a business contract hire, as the lease agreement takes place for the purpose of business. By comparison, personal contract hires exist for individual use of an asset (like renting a car on holiday).
So, if you’ve seen both terms and are wondering if contract hire is the same as an operating lease, it’s safe to assume the terms can be used interchangeable
That being said, you might be wondering if hiring plant is still a better option than buying the necessary machinery outright. While purchasing plant might be tempting because it entitles you to full ownership of assets that will retain their value as long as they’re maintained, it’s an expensive option. When you factor in running and maintenance costs, the price will only go up.
Hiring the required plant, on the other hand, offers more flexibility than you might think – and at a lower cost. With a reliable plant hire company, the process is easy to start and offers loads of convenience. You can use the required equipment as and when you need it with full assurance that it will be well-maintained to a high standard.
When taking out an operating lease on plant equipment, you will be responsible for arranging the right insurance. Hired in plant insurance is the term used for a policy that will cover the vehicle while it is leased by you, and in general, your plant hire company will advise you on the right policy for your needs.
If you’d like advice on hired in plant insurance, feel free to give Tiger Plant Hire a call on 01793 352250.
If you’re looking to lease plant machinery in Swindon, Wiltshire, then Tiger Plant Hire can help. Our vast range of plant machinery includes everything from telehandlers & forklifts to dumpers and water storage.
You can contact us to speak to one of our friendly team members today. If you have any questions, check out our FAQ or browse our blog for more information
