If you’re considering the purchase of a new tractor, there’s another option in the form of long-term hire. With low commodity prices and uncertainty over farm cash flows, hiring from Reading-based Per Hire over a longer period can be a great way to run a tractor. With very little initial outlay and then monthly payments, capital funds are then available for investment in more specialist machinery or for assets such as grain stores.
According to the agricultural hire manager for Per Hire, James Lane, the company offers a wide range of hire periods on its tractor fleet from as little as one day.
“We’re increasingly being asked to cost one-, two- or even three-year hires with an hours limit attached,” he added. “With a long-term hire, we can offer a fixed monthly cost, with known cash flow and an easier way of budgeting.
“Hiring a tractor means fixed costs, with servicing being carried out as part of the hire charge. Hire charges can be written off against tax and you don’t need to worry about depreciation of the tractor, expensive breakdown bills or prices when you want to swap.”
Hiring a standard-spec John Deere 6190R AutoQuad 50km/hr from Per Hire would cost about £290/week based on a 52 week/1,000 hour contract. This equates to £15,080/year, and this would be payable on a monthly basis as the tractor is used.
A total cost of £45,240 (excluding VAT and haulage) to hire this tractor over three years (and/or 3,000 hours) equates to £15.08/hour including servicing, which works out highly competitive against actually purchasing the same unit with an extended warranty.
At the end of the agreed period, the hirer can then swap the tractor for another unit or keep it for a further period, or even choose to buy the unit at an agreed value.
“We’re flexible and believe that long-term hire offers a great advantage over buying as the total you actually pay for running the tractor is less (albeit you’re not actually buying the tractor),” Mr Lane said. “There’s no hassle in negotiating the purchase and resale prices, plus you will have more peace of mind as all servicing costs are covered.”
For more information visit: www.perhire.co.uk.
