How much should I expect to pay, what kind of contract will I need to tie myself into, what are their obligations towards maintenance and what are mine? What should I look out for?
Harry I looked into this and it worked out a lot cheaper to lease a brand new truck on a full maintenance lease than rent a second hand unit, to give you an example, we work along side a subby who is renting a fleet spec XF 105 410 06 plate and paying around £950 per month for the privilege, the only thing he needs to worry about is fuel, but it is a basic motor and very underpowered, he has it on a 1 year rolling contract. He is now in the process of getting shot of the XF and leasing a new Stralis (I know don’t say it) which he is going to pay £320 per week for, now for this he gets a brand new fully speced motor with everything, but more importantly to him he can have it sign written, and treat it like it’s his own, which he can’t do with the hire truck. I think it’s your choice really, if I had the option now though I would lease rather than buy!
How much should I expect to pay, what kind of contract will I need to tie myself into, what are their obligations towards maintenance and what are mine? What should I look out for?
Study the return conditions/excess mileage charges and their policy on the tyres…On the R+M, their obligation would be total, everything, yours would be to check the oil/water/tyres/ect…on the costs, the longer the cheaper, but, do you want 60 months for the sake of a £50per week saving, you may be better off paying a bit more, and going for a rolling 6 months…You can get rates from £250 [ ] upto £450 [ ], it depends on your buying power, they may not even want to talk to you, they may want to kiss your ■■■■, their back up is paramount IMO, you dont want a chariot @ £250PW, then find yourself stuck everytime there is a problem........a figure Ive been quoted as a ball park around here is £340PW…all you do is pay the driver, insure it, fill it up
Hopefully you will get a sympathetic salesman, who looks at your longer term potential, fingers crossed
Stanley Mitchell:
a figure I`ve been quoted as a ball park around here is £340PW…all you do is pay the driver, insure it, fill it up
£17,680 a year? Does that include insurance?
Assuming the driver wants £25,000 (including NI contributions etc.).
Assume the truck does 8mpg at £5.67/gallon, less VAT (not quite there yet but it will be soon ) and you cover 100,000kms (62,000miles) a year = £43,900
Means the truck has to earn in the region of £86,000 before it starts to return a profit? Plus whatever the lease agreement doesn’t include. Is this accurate? And if so is it feasible?
To spot hire a truck is about 400 quid a week. Very dear but you could do it for a couple of months and see if your sums add up and if not give it back or look at buying or leasing on a more permanent basis.
Wish I had done this to tell the truth.
Stanley Mitchell:
a figure I`ve been quoted as a ball park around here is £340PW…all you do is pay the driver, insure it, fill it up
£17,680 a year? Does that include insurance?
Assuming the driver wants £25,000 (including NI contributions etc.).
Assume the truck does 8mpg at £5.67/gallon, less VAT (not quite there yet but it will be soon ) and you cover 100,000kms (62,000miles) a year = £43,900
Means the truck has to earn in the region of £86,000 before it starts to return a profit? Plus whatever the lease agreement doesn’t include. Is this accurate? And if so is it feasible?
Looks like it doesn’t include insurance so that’s another 3-4k on top meaning you need near enough 90k earnings before you make any profit, which is roughly £1900/week if you reckon on working 48 weeks of the year.
That seems feasible to me, when I spoke to P&O a few months back about traction work they reckoned you would earn £1800-£2000 on day work or £2100 tramping.
That said it depends on the fuel usage, I spend getting on for 20k a year more than your guess on fuel, but then again I’m on bulk work at 44t most of the time. I’ve no idea how much fuel you would use on the P&O job mentioned above as I never bothered with it.
Stanley Mitchell:
a figure I`ve been quoted as a ball park around here is £340PW…all you do is pay the driver, insure it, fill it up
£17,680 a year? Does that include insurance?
Assuming the driver wants £25,000 (including NI contributions etc.).
Assume the truck does 8mpg at £5.67/gallon, less VAT (not quite there yet but it will be soon ) and you cover 100,000kms (62,000miles) a year = £43,900
Means the truck has to earn in the region of £86,000 before it starts to return a profit? Plus whatever the lease agreement doesn’t include. Is this accurate? And if so is it feasible?
The question was, “how much”, I answered to the best of my knowledge
Insurance would be extra
I agree, the figures are frightening, is it any wonder that Eddie Stobart want to double shift everything ?
I got out of operating trucks many years ago, I wonder why ?
Don`t forget the trailer, another cost, unless your on traction
How much should I expect to pay, what kind of contract will I need to tie myself into, what are their obligations towards maintenance and what are mine? What should I look out for?
I would of thought this would be the right thing to do with a heavy workload, your costs are a known figure month in month out.
i dont think renting is a good idea (other than for a short while to try a new job) as has being pointed out above you know your costs during a high workload month, the problem is in a poor month the cost will remain the same!
and remember the hire firm are making money out of you so in most cases it wont cost anywhere near the hire cost to run and maintain the truck!
i know a lot of small hauliers and dont know any that rent, other than cover for breakdown!
due to the costs involved imo its a waste of money thats to hard to come by, also when you look at the costs involved you could buy a v good unit thats not that old if you stick a good deposit down and look after it you will have a truck to sell if it all goes ■■■■ up!
if you are runing the thing day and night then the sums may stack up better!
moose
Moose:
i dont think renting is a good idea (other than for a short while to try a new job) as has being pointed out above you know your costs during a high workload month, the problem is in a poor month the cost will remain the same!
and remember the hire firm are making money out of you so in most cases it wont cost anywhere near the hire cost to run and maintain the truck!
i know a lot of small hauliers and dont know any that rent, other than cover for breakdown!
due to the costs involved imo its a waste of money thats to hard to come by, also when you look at the costs involved you could buy a v good unit thats not that old if you stick a good deposit down and look after it you will have a truck to sell if it all goes ■■■■ up!
if you are runing the thing day and night then the sums may stack up better!
moose
I think Harry has almost guarunteed work reading his posts. You are right about buying with a limited use need tho, if your paying rent it needs to work full time.
I have both rented and leased tractor units for the last twelve years, the leases have been from MB when their prices where right. One new Megaspace for a 3 year lease, others 2nd hand on two year deals. MB are very picky on return condition. I am at the moment renting a Stralis on a two year deal from a local company( not national) that I have used before for £1407 a month, not including tyres.
In your position I would try to get a one year deal as cheap as possible or even, as has been suggested, spot hire one for a couple of months to see how it goes.I have had to go for the best deal on offer at the time I need to replace the vehicle and this can change rapidly, usually just after I have done a deal.If you are certain of regular work leasing a new vehicle can be surprisingly value, no tyre problems for a good while at least.
I think hiring only really works in the short term, some of these leasing deals just now aren’t bad, I toyed with the idea of changing for another second hand truck last year, spoke to local Daf dealer and ended up with a brand new 105/460 with wet gear for £320 a week over three years. Only thing I have to pay for is road tax, fuel and insurance, tyres should last a good while before they need looked at too. Fixed costs and no surprises are certainly reassuring, with the plus side you get a nice motor to drive. Shop about and get plenty quotes.
] upto £450 [ 
], it depends on your buying power, they may not even want to talk to you, they may want to kiss your ■■■■, their back up is paramount IMO, you don
) and you cover 100,000kms (62,000miles) a year =