Case study · Construction
Plant Hire Group – Compact Excavator Fleet Expansion
A plant hire group added twenty nine micro excavators with a facility of around £400,000 over two years, matched to a short hire replacement cycle.
Industry: Plant hire · Project: Twenty nine micro excavators · Facility: approximately £400,000 over 24 months, hire purchase
Overview
A regional plant hire group needed to expand its micro excavator fleet by twenty nine machines to meet hire demand. The order came to around £400,000.
Challenge
Hire fleets turn over quickly. A long agreement would have left the group paying for machines past the point it wanted to sell them on, while a cash purchase of this size would have tied up funds needed elsewhere in the business.
Solution
We arranged a hire purchase facility over 24 months, deliberately short so the agreement runs in step with the group's fleet replacement cycle. The machines are owned outright at the point the group would normally take them to market.
Results
- Twenty nine machines added to the hire fleet in one order
- Agreement term matched to the fleet replacement cycle
- Machines owned outright before resale
- Utilisation increased without drawing on cash reserves
