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24 June 2024

8 REASONS WHY YOU SHOULD CONSIDER LONG-TERM TRACTOR HIRE

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Thinking about long-term tractor hire? Weighing up the pros and cons of renting vs buying?  Or never even considered hiring a tractor for your farm?

With tractor purchase prices ever increasing, and cash flow management always a challenge, long-term tractor hire could be the perfect middle ground – supporting your finances and giving you access to the machinery you need.

Here are just a few reasons why hiring a tractor from ASHBROOK could be one of the best decisions you make this year.

1. You don’t need to break the bank or empty your account

If you want the latest and greatest tractor to supercharge your productivity on the farm or in the yard, you’ll need a hefty chunk of cash in your account. We’re talking more than £300,000 for the biggest and best models.

That’s probably going to mean emptying your account for the deposit, or maybe even taking out a loan to support your cashflow. It’s a very expensive proposition.

But long-term tractor hire dramatically reduces those initial costs. For a small monthly fee, you get a new tractor AND get to keep your cash in your account, safe for when you need it most.

Keeping your cash means that it can be used in more productive ways, such as taking advantage of Government grant schemes to invest in permanent structures and items which support productivity.

It’s financially beneficial for your books, because with tractor hire, you don’t need to carry a deprecating asset on your book.  Better still, the hire cost is a farm expense, which means it’s fully tax deductible each year.

Nigel Harper of N D Harper Ltd, an agricultural contractor based in the North West, hires multiple tractors per year and sees the cash flow benefits first-hand:

“it’s a real benefit not having to carry the asset on our books throughout the year, meaning we don’t need to worry about insurance and finance costs in quieter periods’’.

 

2. You get to try out all the newest tractor technology

There are always new makes and models of tractors. You could spend all your cash on the newest model today, but in a couple of months there will be a newer version, with smart features and extra comfort, making jobs even quicker to complete.

But if you’ve invested in buying a tractor, you’re stuck with what you have. If you hire your tractor though, and you fancy trying out that new technology to see how it could make your life easier, you can.

Having access to the latest fuel efficiencies year after year offers considerable savings in money and farm emissions. In fact, Nigel was over the moon when he switched from John Deere to Case IH, saying:

“We achieved significant fuel savings with our new Case IH tractors versus our previous John Deere’s and in a time of escalating fuel costs this was particularly welcome”’.

All you have to do is speak to a tractor hire specialist like ASHBROOK, and we’ll help you get the newest tractor with all the latest mod cons.

 

3. The best quality and reliability is guaranteed

When you hire a tractor from ASHBROOK, you can relax. You don’t need to worry about it breaking down.  A new or nearly new tractor (depending on your hire agreement) is coming your way.  Our knowledgeable team talks to you in advance of your hire to make sure you get the optimal specification of tractor.  It won’t be underpowered or fail to do the jobs you need it to. You’ll always get the best quality and the right tractor for the job.

At ASHBROOK, our CASE IH tractors are of the highest quality. You get instant access to the best machinery that will always deliver.

And if you do run into any issues, our tractor hire contracts mean we just swap your tractor out straight from the dealer.

Tom Farrington, ASHBROOK Service Manager and Tractor Hire Specialist says:

“The tractor fleet looks after itself, in the main.  With the quality and age of the tractor, we rarely run into issues.  That said, should anything raise its head we have excellent connections with the Case IH dealership throughout the UK, ensuring that any problems are dealt with quickly and efficiently, and that jobs aren’t standing still on the farm.”

 

4. Say goodbye to maintenance and repairs

One of the biggest challenges with a tractor purchase is the repair and maintenance costs. You’re responsible for servicing, for fixing, for replacement parts and for keeping it on the road.

That can become a drain on your time and on your bank account, because repair costs aren’t cheap. Tractor maintenance costs can quickly mount up, and if you have a major problem that needs fixing, repair costs could skyrocket.

But that’s not an issue with long term tractor hire. Newer models mean there’s very little chance of any maintenance or repair problems, and if there is, they’re not your responsibility.

Cheshire Dairy Farmer, Andrew Venables has been enjoying this benefit of tractor hire saying:

“Long-term tractor hire has saved me money.  It’s great to be free from the concern of maintenance bills and unexpected repair costs should an issue occur.  Plus, if there’s any problems with the tractor, a replacement is sent and work carries on, rather than being without a vital piece of farming equipment in a time sensitive period.  Tractors have a sixth sense when it comes to silaging and other busy periods and know the most inconvenient moment to break down!”

 

5. You can level up to get a better tractor than you thought

With tractor hire offering a lower upfront cost and more economical monthly payments, you’ll probably find your budget goes further.

If you were buying, you might only be able to afford a middle-of-the-range, mid-sized CASE Puma 165. But if you hire, for the same amount you could upgrade to a Puma 200, 240 or even a 260.

And with a more powerful machine, you might be able to do more around your farm and complete tasks quicker than your thought.

 

6.Swap, upgrade or downsize for the tasks at hand

When you buy a tractor, you have to make sure you get the right make and model for all your needs. You need a multipurpose workhorse, a jack of all trades.

When you’re hiring, you can get specific. You can choose the tractor you need for a big project, then swap it when the job is complete.

You can upgrade if your current model doesn’t have the power or functionality you need for tasks out in the field, or downsize if you need a smaller model for projects around the yard. It’s quick, simple and highly flexible.

 

7. Get extra tractors on farm, whenever you need them

That flexibility extends to seasonality too. Whether it’s harvest time or just finally time to complete that big project on your land, when you hire tractors you can pick up extra vehicles whenever required.

You could have your staple tractors and then hire one or two extra models for your workers. All you need to do is pick up the phone and speak to the friendly team at ASHBROOK.

 

8. Forget the sale or storage hassles when you no longer need your tractor

Lastly, if you no longer need your tractor, a long-term hire means you can just hand the machine back at the end of the contract.

You don’t need to worry about sorting out storage on your farm, and you don’t need to go through all the hassle and rigmarole of putting it up for sale, dealing with buyers and trying to recoup as much of your initial investment as you can.

Whenever you don’t need your tractor, you can just return it to your local Case IH dealer, without worrying about the financial implications. It’s the simple, stress-free option.

 

The cost of renting/ hiring a tractor versus buying

Scenario 1: A 250hp tractor

Figures based on 11 weeks and 500 hours of use.  Owned price based on a tractor value of £179,224.

Source: John Nix Pocketbook for farm management (2024, 54th edition) vs ASHBROOK 2024 tractor hire prices

 

  Owned

 

Hired from ASHBROOK
Depreciation (at 7%) / hire cost £25.09 £29.11
Finance £8.78
Repairs £5.38
Insurance £4.31 £4.31
Total £43.56/ hour £33.42/ per hour

 

Renting over owning delivers a saving of £10.14/ hour and £5,070 for the total length of the hire (11 weeks).

 

Scenario 2: A 120hp tractor with a loader

Figures based on 1 year and a 1,000 hours.  Owned price based on purchasing a 2nd hand tractor valued at £36,000.

Source: Source: Tony Evans, senior farm business consultant at Andersons via Farmers Weekly and ASHBROOK 2024 tractor hire prices

 

  Owned

 

Hired from ASHBROOK
Depreciation (at 25%)/ hire cost £9.00 £10.32
Finance £3.60
Repairs £3.60
Insurance £4.00 £4.00
Total £20.20/ hour £14.32/ per hour

 

When you hire instead of buying, you could save £5.88 per hour or £5,880/ year and have a brand-new tractor!

 

Convinced by the idea of long-term tractor hire?

If you think long-term tractor hire could be for you, or you want to find out more information, have a chat with our friendly team.

We’d be more than happy to talk you through all your options and find the best tractor hire for your needs.

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