Main Feature
pack and combi units on hire throughout the UK. Simplifying the hire process and providing a flexible range of options is key. A simple hire agreement and proof of insurance can have you driving away in less than an hour. Also, with prices starting from £130 per week, it is a cost-effective way to benefit from class-leading equipment.”
Alongside van-pack and jet/vac combination units, Rioned has added portable machines to the hire range. The portable units have been designed for residential and light commercial use, as well as areas with hygiene restrictions such as hospitals, and can be hired short-term for a minimum period of two weeks.
Ultimately, there is a place for hired equipment well beyond emergency breakdown. Renting equipment can also be an effective way for businesses to try out the latest technologies, before choosing to fully invest in them as a permanent part of their portfolio. Equipment rental may not always be the right solution, but it should definitely be considered as a valid alternative to equipment purchase or lease for certain applications.
LEASE – To many potential equipment users who perhaps do not use the lease option it appears to be just another way of describing a rental option. In some ways perhaps it is but it is often much more complex than that. In its simplest form it might be said that hiring/rental refers to shorter term provision of equipment where the equipment is simply returned to the rental company on completion of the hire term, whilst leasing refers to longer term contracts with a variety of different term-end options.
Leasing can be achieved in numerous ways, perhaps the most well-known is the lease- purchase where the equipment is effectively paid for on a monthly basis, or whatever time frame is agreed with the ‘lessor’(the equipment finance provider) and at the end of prescribed or contracted period the equipment becomes the property of the ‘lessee’ (the equipment end-user). This can be done in a way which allows the lessee to pay for and operate the equipment over a period of time and at a cost that is commensurate with the project/workload in hand. It may be that there is nothing to pay at the end of the lease contract or that a final lump sum payment is required to fully own the equipment.
Other lease options include leasing equipment that is ultimately returned to the lessor at the end of the contract in a manner that it can then be sold on as ‘used’ equipment or with a residual value to the lessee which can be put toward a new lease contract for a newer piece of equipment as a form
of down-payment. There are probably several other combinations and permutations that are available but in trying to research this article when speaking to some companies that would be involved in such contracts there appeared to be some concern that discussing too much detail may be commercially sensitive. This is why there though there may be other options available they are not discussed here.
Where leasing can differ significantly from hiring is that the ongoing costs of maintenance, repair, servicing etc. may become the responsibility of the lessee not the lessor. This will all depend on the type of lease and the terms of the contract agreed. This may mean that whilst the lessee does not own the equipment it is still responsible for the machine/equipment upkeep over and above the daily maintenance requirement of most equipment. Not undertaking this full service upkeep effectively may in turn have a detrimental effect on any residual value that may be placed on the equipment at the end of the lease period should such a value be part of the original contract. This in turn may affect the potential for the pricing and payment requirements if a newer piece of equipment is to be leased once the original lease expires.
With leasing being more often than not financed by an approved ‘third party@ there is also a need for the lessee to have a reasonable if not high level of credit status in order to obtain the lease contract on anything like favourable terms.
SELECTING THE RIGHT OPTION FOR THE CIRCUMSTANCES
One of the most important aspects of equipment selection, and the process by which it is procured, is the knowledge of exactly what it is you are trying achieve with the piece of equipment you are looking at. Whilst this may seem a most obvious statement it is often the case that due to price, apparent flexibility of use or other ‘advantage’, a piece of equipment may turn into one that is more a ‘jack of all trades but master of none’. It the requirement is a long term operation on several projects that need the same type of equipment over and over again, then perhaps purchase is the best option.
8 drain TRADER | June 2018 |
www.draintraderltd.com
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