Long term plant hire usually beats buying when a machine would work fewer weeks a year than you think, or when you would rather not carry the cost of servicing, inspections, repairs and resale risk. Buying makes sense when a specific machine is busy almost every working week for years and you have the workshop, storage and cash flow to look after it. Most contractors in Devon and Cornwall sit somewhere in between, which is why it pays to work through the true costs before signing a finance agreement.
In this guide
The purchase price is only the start
When people compare buying a mini excavator with hiring one, they often set the monthly finance payment against a monthly hire rate and stop there. That leaves out most of what ownership actually costs. A fair comparison needs every line below.
- Depreciation: the gap between what you pay and what the machine is worth when you sell it. Hours, condition and the second-hand market at the time all affect this, and you carry the risk.
- Finance cost: interest on a loan or hire purchase, or the return you give up by tying up your own cash.
- Servicing: filters, oils, greasing and scheduled services at the intervals the manufacturer sets.
- Wear parts and repairs: tracks, bucket teeth, pins and bushes, hydraulic hoses, batteries.
- Statutory inspections: lifting equipment such as a telehandler needs regular thorough examinations under LOLER.
- Insurance: own-plant cover, including theft from site, which is a real risk for compact machines.
- Storage and security: a secure yard or shed, trackers and immobilisers.
- Transport: a suitable trailer and towing vehicle, or paying someone to move it.
- Downtime: when your own machine breaks, the job stops until you fix it or hire a replacement anyway.
Ownership costs that are easy to miss
The list above covers the obvious lines. These are the ones that tend to surface a year or two after the purchase, when the machine is no longer new.
Statutory examinations and inspections
Lifting equipment such as a telehandler falls under the Lifting Operations and Lifting Equipment Regulations 1998 (LOLER). HSE’s guidance is that it needs a thorough examination by a competent person at least every 12 months, or every six months for equipment used to lift people and for lifting accessories, unless a written examination scheme sets different intervals. See HSE’s LOLER guidance. Excavators used for lifting loads with a hook or quick hitch bring their own checks. Every examination is a cost and a day when the machine may be off the job.
Fuel rules
Since April 2022 most construction users have not been allowed to use red diesel, while agriculture, horticulture, forestry and fish farming kept their entitlement. If you buy a machine for mixed farm and contracting work, you need to be clear which fuel it can legally use for each task. Hired machines from us run on white diesel only, which keeps things simple. Check HMRC’s current guidance on red diesel entitlements before you decide.
Your time
Booking services, ordering parts, arranging inspections, renewing insurance and finding a buyer when you sell all take hours. On a hire, most of that admin sits with us. It rarely appears in an ownership calculation, but it is real time away from paid work.
Technology and emissions
Clients and principal contractors increasingly ask about noise, emissions and electric options. A machine bought today may be less welcome on some sites in five years. Hiring lets you move to newer or electric kit, such as the Tracspider carriers or the HG 1000 electric dumper, without being tied to an older purchase.
Utilisation: the number that decides it
Utilisation means how many weeks of the year a machine is genuinely earning. Ownership spreads a large fixed cost across the weeks you use it, so a machine that works most weeks looks cheap per week and a machine that sits in the yard for half the year looks expensive.
Be honest when you estimate it. A 6 tonne excavator might be flat out on a groundworks contract from spring to autumn, then barely move through a wet winter. A telehandler on a mixed farm might be essential at harvest and silage time and idle in between. Count the weeks in your diary from last year, not the weeks you hope to fill next year.
A simple way to test it
- Add up the annual cost of owning: depreciation, finance, servicing, repairs, inspections, insurance, storage and transport.
- Divide by the number of weeks you realistically expect the machine to work.
- Compare that cost per working week with a weekly, monthly or long-term hire quote for the same machine.
- Add something for downtime risk, because hire includes a replacement or repair and ownership doesn’t.
If owning only wins when you assume near-full utilisation and no breakdowns, hiring is probably the safer bet.
What long term plant hire includes
Our long-term rental contracts typically apply from around four months upwards and are priced on agreed monthly rates. The longer the term, the better the rate per week compared with ad-hoc daily or weekly hire. Each contract includes:
- Routine scheduled servicing at no extra cost, carried out on site.
- Breakdown cover for equipment faults, with repair or replacement, whichever is faster.
- A named account manager as your direct contact.
- Delivery to site and collection when you finish, across Devon, Cornwall, Somerset and Dorset.
- Priority when you need extra items or a replacement.
- Reasonable terms to extend, add kit or finish early if the project changes.
Breakdowns caused by misuse or damage are still the hirer’s responsibility, and insurance is not automatically included, so build your own cover into the comparison on both sides.
A worked example without the numbers
This is an illustration of the method, not a real business or a real quote. Picture a small groundworks firm based near Bodmin weighing up a 6 tonne zero tail excavator such as the Sunward SWE 60UF.
Step one: the diary check
Looking back over last year, the firm finds it needed a machine of that size for about 26 weeks: a long run of house plots from April to August, then scattered drainage jobs. Through December and January it barely needed one at all, because sites on heavy ground were too wet to work.
Step two: the ownership cost
The firm adds up a year of finance, expected depreciation, two services, wear parts for the tracks and bucket teeth, own-plant insurance with theft cover, a tracker, and a share of the yard rent. It divides the total by 26 working weeks, not 52, because that is how many weeks the machine would earn.
Step three: the hire comparison
It then asks for a long-term rental quote covering April to August, plus weekly hire prices for the scattered autumn jobs. Servicing and breakdown cover are included on the long-term contract, so it does not need to allow for a fitter or for lost days waiting on parts.
Step four: the judgement call
If ownership only wins when the firm assumes it will fill 40 weeks a year, hire is the safer choice for now. If its order book is already full for two years and it has a secure yard, buying may be justified. Either way, the decision rests on real figures rather than a finance payment set against a weekly hire rate.
Side-by-side comparison
| Cost or risk | Buying | Long-term hire |
|---|---|---|
| Upfront outlay | Deposit or full price | None beyond the hire and any deposit |
| Depreciation and resale | Your risk | Our risk |
| Routine servicing | Your cost and your time | Included |
| Breakdowns (not misuse) | Your cost, plus lost days | Repair or replacement arranged by us |
| Changing machine size | Sell and buy again | Swap or add kit by agreement |
| Insurance | Own-plant policy | Hired-in plant cover |
| Storage between jobs | Your yard | We collect at the end |
| Long-run cost if busy every week for years | Can be lower | Can be higher |
Cash flow and capital
Even when ownership wins on paper over five years, it can lose on cash flow in year one. Buying usually means a deposit or a large lump sum, plus finance repayments that continue whether the machine is working or not. That money is not available for wages, materials or winning the next contract.
Long term plant hire turns that capital outlay into a predictable monthly cost that stops when the contract ends. For a growing business, that flexibility can matter more than the last few percent on the total cost. Hire and ownership are treated differently for tax, so ask your accountant how each option would look in your own accounts before you decide.
It is also worth thinking about what happens if work dries up. A financed machine still has to be paid for during a quiet spell, a wet winter or a delayed contract. A hire contract can be ended with reasonable notice, and the machine goes back to us. For regular customers, a credit account with invoices payable within 30 days can smooth cash flow further, so ask about setting one up when you request your proposal.
Which machines people tend to buy and which they hire
There is no fixed rule, but patterns show up across contractors, farms and estates in the South West. Use this as a starting point, not a verdict.
| Machine | Often owned when | Often hired when |
|---|---|---|
| Plate compactor or rammer | Used on most jobs every week | Occasional use, or a specific size needed |
| Mini excavator (0.8 to 3.5 tonnes) | Core machine for a busy groundworker | Second machine, different size, or seasonal peak |
| 6 to 9 tonne excavator | Constant bulk dig and civils work | Project-based work or a few months a year |
| Telehandler | Daily use on a large farm or yard | Seasonal peaks, LOLER and repair costs a concern |
| Tracked jaw crusher | Specialist recycling businesses | One-off demolition or a field full of rock |
| Tractor and implements | Daily farm use | Extra capacity at silage, harvest or for estate work |
You can see the full range in our construction equipment and agricultural machinery pages.
When buying genuinely makes sense
We would not pretend hire suits everyone. Buying can be the right call if a machine is busy nearly every week, you keep machines for many years, you have a fitter or a good relationship with a local engineer, and you have secure storage. Some farms that use a tractor and loader every day of the year fall into this group.
Even then, many owners use hire to fill the gaps: a 9 tonne Sunward SWE 90UF for a month of bulk digging, a Dragon jaw crusher to recycle demolition rubble, or a second dumper when a job gets busy. Owning your core machine and hiring the peaks is often the most efficient mix.
How a long-term contract runs
If you have not used long term plant hire before, it helps to know what happens from first message to final collection.
- Tell us the project. The machines, the site and roughly how long. A rough outline is enough to start.
- Proposal. We send a clear written quote with itemised rates, delivery and contract terms, usually the same day. Larger contracts may take a day or two.
- Delivery. Kit arrives on your agreed date, and you are introduced to your named account manager.
- Servicing on site. Routine scheduled servicing is handled by us, so the machine does not need to come off the job for a trip back to Okehampton.
- Changes mid-contract. Need a bigger excavator for a month, or an extra dumper? Talk to your account manager and we adjust the contract.
- Extension or collection. Extend on rolling monthly or fixed terms if the project runs on, or we collect when you finish.
If you are weighing up a purchase, GOV.UK explains how capital allowances work for business equipment. Speak to your accountant for your own position.
Questions to answer before you buy
- How many weeks did you actually need this type of machine in the last 12 months?
- Will you still need the same size in three years, or is your work changing?
- Who will service it, and how long would a breakdown keep it off the job?
- Where will it be stored at night, and what will your insurer require for security?
- What will it be worth when you sell it, and who will you sell it to?
- Have you priced long-term hire for the same machine over the same period?
If several of those answers are uncertain, hire first. You can always buy later once the work has proved itself.
Own the core, hire the peaks
For many businesses the answer is not one or the other. A common pattern is to own the machine that works every week and use long term plant hire or short hires for everything else.
- Seasonal peaks. A farm that owns its tractor can bring in a John Deere 6155R or a Bailey low loader trailer for the busiest weeks, rather than buying capacity it needs for a month.
- Size changes. A groundworker who owns a 1.8 tonne machine can hire a 9 tonne excavator for a month of bulk dig, then send it back.
- One-off processes. A Dragon jaw crusher to recycle demolition rubble into usable hardcore, or a Weber MT trench roller for a long service trench, rarely justifies a purchase.
- Cover for your own machine. When your own excavator is in for repair, a short hire keeps the job moving.
This approach keeps your fixed costs down while making sure you always have the right size of machine for the job in front of you.
Where Flex Hire fits
Long-term rental assumes the same kit stays on one site for months. If your work moves between jobs and you need different machines each month, Flex Hire may suit you better. One flat monthly fee covers a tier of equipment, from £795 +VAT and delivery a month for Tier 1 up to £1,495 for Tier 4, with unlimited swaps, servicing included and a 10% loyalty rebate. There are no long-term contracts, so it can also be a way to test whether you really use a machine enough to justify buying one.
Frequently asked questions
What is the minimum term for long-term rental?
There is no hard minimum, but long-term rates typically apply from about four months. For shorter periods, weekly or monthly hire is usually the better option.
Can I put several machines on one long-term contract?
Yes. Multi-machine contracts are common, with one proposal, one monthly figure and one point of contact. For larger fleets, use our contact form and we will put together a tailored proposal.
Is hire cost tax deductible?
Hire charges and the cost of owning plant are treated differently for tax purposes. That is a question for your accountant, who can look at your own figures.
What happens if the project finishes early?
We build reasonable early termination terms into contracts, so talk to us as soon as you know the end date has moved.
Does long term plant hire include breakdown cover?
Yes, for faults with the equipment. We repair or replace the machine, whichever gets you working faster. Damage caused by misuse or accidents is the hirer’s responsibility.
Can I use hire to test a machine before buying one?
Yes, and it is a sensible way to check how often you really use it. A few months on long-term rental or a Flex Hire account gives you real utilisation figures rather than guesses.
Do you cover sites outside Devon, Cornwall, Somerset and Dorset?
Those four counties are our core area. If your site is just outside, get in touch anyway, as depending on the contract size we may still be able to help.
Talk to us about long term plant hire
Tell us the machine, the site and roughly how long you need it, and we will send a clear proposal, usually the same day. WhatsApp or call 07841 036064 (Mon–Fri 7:30am–5:30pm), or email info@conagri.co.uk for a written quote.
