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Thread: Telehandler contract hire or buy?

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    Telehandler contract hire or buy?

    Hi

    I am looking to change our telehandler.

    I was looking on peopleís thoughts on contract hire over buy.
    No trade in.
    Would be looking at a 5t + machine. Doing approx 1000 hrs year.

  2. #2
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    Re: Telehandler contract hire or buy?

    Quote Originally Posted by robbo12 View Post
    Hi

    I am looking to change our telehandler.

    I was looking on peopleís thoughts on contract hire over buy.
    No trade in.
    Would be looking at a 5t + machine. Doing approx 1000 hrs year.
    I take it you are keeping your old one for back up then ?? If it's going to b front line then contract hire would be the way ahead,, will it be in constant use each day IE feeding NB cattle,,or loading lorries ?? Buying with no trade you'll be looking at the thick end of £60-70 k n up depending on mark n spec,,
    contract hire "must" b the way ahead all u need to do is drive it, dealer does the servicing repairs etc, can b proper handy if you have a busy machine with several operators who might not have time to "look after it"
    bloke at our place virtually lives in "his" JCB he does all the service n maintain, it's 3 1/2 year old done 5000 hrs, n due changing, boss is thinking of contract hire,
    Big Vern..... Stay low Move faster

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    Re: Telehandler contract hire or buy?

    I am leaning to contract hire.
    Machine specíd Up is coming in at about 90k to buy.
    But as mentioned contract hire takes away all the worry of servicing and repairs as itís all covered in the yearly price. Plus no worries of residual value.
    I am all for hearing the pros of owning though!!

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    Re: Telehandler contract hire or buy?

    Quote Originally Posted by robbo12 View Post
    I am leaning to contract hire.
    Machine specíd Up is coming in at about 90k to buy.
    But as mentioned contract hire takes away all the worry of servicing and repairs as itís all covered in the yearly price. Plus no worries of residual value.
    I am all for hearing the pros of owning though!!
    sounds like it is time to dig out the spreed sheet and start crunching numbers, such as:
    what happens if you only use it for 500 hours a year? or 1800 hours per year? how much does the payment change for both the buy vs contract
    what service items will they be charging you for at shop rate plus travel time plus out-of-shop premiums vs what it would cost you to do the maintenance yourself
    price up the cost of "included" service to add to your cost-of-ownership
    who pays for the liability insurance, fire, theft, on the contract (you would have to pay that on a purchase)
    if you decide you need to get out of the contract, what will be the premium to cancel the contract

    then you look at the benefits / issues - if it is your busy time of year will their service guy come after hours to do maintenance or do they want you to just "stop what you are doing" so he can "check the air pressure "

    You hit the nail on the head, it is a big decision

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    Senior Member T P's Avatar
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    Re: Telehandler contract hire or buy?

    From what I'm hearing about the reliability of the latest machines regardless of manufacturer contract hire gives you predictable costs. I know of one instance where the bill to fix a machine still in warranty on one single occasion was over £8k and the dealer was on speed dial. The owner had no confidence in keeping it outside of warranty and had to throw it in against another make of new one which isn't fairing much better so far. The more fancy gizmo's you get on anything the less reliable it is especially if made by anyone in Europe. Now if Hitachi, Kobelco or komatsu would step into the market that might shake things up for the better. Some Continental machines two year old would be dear if you got them for free.

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    Re: Telehandler contract hire or buy?

    A large concern near here has all their tractors and telehandlers on contract now. It was really worth it when 3 telehandlers were all down at once this last summer.

    If you are just small fry and have machines stood idle quite a bit of the time then it starts getting expensive.

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    Re: Telehandler contract hire or buy?

    I do like the fixed cost of contract hire, alright I wonít own the machine but because we tend to upgrade every 3-4 years I can pin down costs. My neighbour had a machine that would of cost him 36k in repairs if it wasnít on contract hire warranty.

    Itís a Kramer Iím looking at. Opinions??

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    Senior Member T P's Avatar
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    Re: Telehandler contract hire or buy?

    Kramer is a nice machine,the water cooled deutz engines sadly are not what the air cooled one's used to be,the man who buys our cattle has had three,the engine calved in the first one under warranty and had to be replaced when some wee crappy plastic bit split and let diesel into the sump oil and destroyed it a week after the supplying dealer serviced it. These look a tidy machine too but there aren't enough about to know what reliability is like long term.

    https://www.bing.com/images/search?q...0F&FORM=IQFRBA

    Just got a snapchat today about another new machine lying down under warranty. It's all very amusing under warranty right up until the warranty comes to an end and then it's squeaky bum all the way. I wouldn't have a new single machine about me instead we run two old simple machines which are reliable and easy to fix with a backup. Telehandlers are among the most essential machines on many a modern farm, you can often do without a tractor easier. The latest Telehandlers with emissions devices and overcomplicated hydraulics are neither quick, easy or cheap to fix which would be ok if they were reliable but they don't seem to be around here where the owners are candid. If I were buying a new machine I'd be looking for one where the same model has been in production for a few years unchanged and the design is now debugged and sorted out. I'd only buy the spec I needed so there's less to go wrong. Things to avoid in my view would be a manufacturer with rapidly evolving models and designs that are never locked down or sorted out. The day to day reliability of telehandlers has gone down the toilet in the last ten years as complexity and price have skyrocketed, I'd be very dubious of the real world advantage of many "innovations" introduced and some seem to be nothing more than a look at what we can do competition between brands. Emissions tech is mandated on all new kit but I don't think anyone has made it reliable yet.
    Last edited by T P; 09-12-18 at 08:15 AM.

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    Re: Telehandler contract hire or buy?

    I am really tempted by contract hire, I know you never own anything but with ever increasing machinery costs and more and more technology to go wrong that the basic mechanic has no chance of fixing without a laptop and a degree from MIT.
    Paying a little more to have warranty over the contract hire and servicing is total piece of mind.

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