Question about train leases

[overthewater]

I do believe all train stock is own by a third party company who rents it either the government or the train companies.

If that is the case, why are the train companies paying for refurbishment work?

 

[WatcherZero]

The tocs agree to a boost in appearance/reliability/lower running costs with the cost added to their annual leasing costs over several years. Simply put more attractive train equals more passengers equals more revenue, whereas tired old decor could put off passengers reducing revenue.

Sometimes the stock owners will do some work off their own backs to make them more attractive to lease or as a demonstrator to sell the improvement program to the tocs.

 

[northwichcat]

Sometimes things are leased out on the basis that they are returned in the same condition as they leased out in and if not a fine is issued.

I believe Angel Trains weren't happy with the condition the Northern sub-leased 180s were returned in.

 

[jopsuk]

Common with leasing (which is usually somewhat different from renting) that leasors can and do make modifications to what they lease - trains, buses, planes, buildings alike. Always done in conjunction with the owner on an agreed finacial basis.

 

[TEW]

Although the TOCs do pay for the cost of refurbishments it is through increased leasing costs. The upfront costs of refurbishment will be financed by the leasing company.

 

[Carlisle]

Sometimes things are leased out on the basis that they are returned in the same condition as they leased out in and if not a fine is issued.

I believe Angel Trains weren't happy with the condition the Northern sub-leased 180s were returned in.

I would have thought that it's almost impossible to return in perfect condition if it's an intensively used train with all the outdoor hazards ballast etc plus regular interior overcrowding/wear and tear

 

[Peter Mugridge]

Sometimes things are leased out on the basis that they are returned in the same condition as they leased out in and if not a fine is issued.

During the Mk 1 EMU replacement process, some damaged VEPs / CIGs were being repaired for this very reason even as their classmates were on the point of being withdrawn!

 

[Carlisle]

Also I think the class 442s were re furbished for SWT ,some only a few weeks or months before the TOC handed them all back to the leasing company

 

[yorkie]

why are the train companies paying for refurbishment work?

Do you have an example of what you're referring to?

 

[455driver]

I would have thought that it's almost impossible to return in perfect condition if it's an intensively used train with all the outdoor hazards ballast etc plus regular interior overcrowding/wear and tear

They dont have to be returned in perfect condition, there is a clause which allows for normal wear and tear, it is only if the train is in a worse condition than allowed for that an extra charge will be levied.