WASTE RECYCLING
Scammell Commercial Ltd Vehicle Hire
Municipal vehicle hire specialists up to date eet including hook and skip loaders, trade waste, ejector trailers, 6X2 and 6X4 tractor units.
Meeting Crossrail and FORS spec’s all maintained in our own workshop covering the South East of England, depot 5 minutes from Dartford Crossing, delivery and collection service available upon request.
LONG OR SHORT TERM HIRE AVAILABLE CONTACT US FIRST:
T: 01375 398444 | F: 01375 398555 | E:
enquiries@scammellcommercial.co.uk www.scammellcommercialltd.co.uk
but maintenance will be included. But if the hire rate is lower, then don’t be surprised if the provider expects to get back more on the extras. When it comes to parts – particularly whether or not manufacturers’ recommended genuine parts are used, it becomes much more of a grey area. Going for the contract hire option will
be for a longer term – and tend to be based on fixed three, five or even seven year terms. Even then however, there may be extensions available, say for an extra year – and the discussions at that point can be the basis for renegotiations or contract renewal. “One way BVRLA members work to
ensure operators are satisfied throughout the duration of the contract is through regular communication. This begins at the start of the contract, when operators are encouraged to clearly outline the intended usage of a vehicle. This is not just about outlining the expected mileage (e.g. 90,000 miles over three years), but the conditions for use. A vehicle used for light material recycling will probably come back in better condition than a skip loader moving rubble off a building site, simply due to the nature of the job. Having constant communication
throughout the agreement is vital, and it’s important to notify the lease company if a vehicle’s usage changes”, says BVRLA’s Jamie Fretwell. Most contract hire and leasing
companies will regularly and thoroughly inspect their assets on-site during the life of the contract and will monitor condition, care and maintenance. This is not least as they are crucial in forecasting residual values – and you will find that the return clauses on leases tend to be more stringent too, on the basis that the user is maintaining the leasing company’s asset. It is also fair to say that the larger hire companies very tightly manage equipment warranty. What are the commercial benefits of
contract hire or lease? Top of the list is that there is no capital outlay, accounting for the asset is ‘off balance sheet’ and there are fixed costs which are set over the contract period. In addition, the user has no risk from changes in legislation – as this is managed by the contract hire company. You can also cover potential downtime risk and response as you can simply call for replacement equipment. At the end of the lease it is worth
Register your email for news and updates at
www.skiphiremagazine.co.uk
remembering that vehicles or equipment will have to return to the company – because it is against financial regulations to sell the asset direct to the incumbent customer. Any acquisition therefore has to be handled through a third-party – which could remove any benefit of doing so. And finally, why would you go out and
buy a whole new fleet or equipment inventory? There is a flip side scenario where a company may actually want to establish a really strong balance sheet, underlined by chunky asset values. This could be because there may be a takeover, merger or exit sale in the wings. Then, assuming that the money is available, there could be a compelling business case to buy new kit to boost the asset value of the business, recover the main capital cost in the first phase of operation and the remainder of the period just generates good revenue. Still not sure which way to go? Actually,
the choice probably depends on where we all are in the economical cycle and, to some extent, government policy at the time... but it’s interesting to note that most of the big hire and rental companies seem to love a recession!
Issue 121 December 2015/January 2016 SHM 67
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88