Sale and leaseback
What is sale and leaseback?
Sale and leaseback gives you a way to simplify the administration and costs on a vehicle fleet you own, while also releasing a lump sum. It can be ideal for companies with medium-sized to large fleets that are looking for greater efficiency, predictable costs, reduced risk, simplified administration and additional capital.
How does it work?
As the name suggests, you sell your vehicles to us and then lease them back. We pay you for the vehicles and you sign a contract hire agreement over 24 to 60 months, with fixed monthly rentals based on duration and annual mileage. Your drivers continue to use the same vehicles and we manage them for you, in just the same way we would on any lease agreement. When the contract is over, we handle the sale of the vehicles.
There are five steps for a sale and leaseback:
- 1.Evaluation: We review your fleet on a range of parameters, including purchase price, special equipment and mileage.
- 2.Analysis: We explore what you need from the fleet now and in the future, and then calculate your leasing rate.
- 3.Signature: You sign our service agreements and individual contracts.
- 4.Payment: We pay you for the fleet or settle existing financial agreements.
- 5.Conversion: We gradually move you over to outsourcing as well as providing driver information.
What we can offer
Range of vehicles
We can purchase passengers cars, light commercial vehicles and specialist vehicles, whether you currently own them outright or have them on finance. Once purchased, the vehicles are registered to us, reducing your administrative burden and eliminating residual value risk.
Fixed monthly rentals
With fixed monthly rentals based on your contract length and estimated mileage, you can easily control your budget. This structure is fully customisable to align with your specific financial requirements and accounting periods.
Removal from your balance sheet
Once the deal is finalised, the depreciation asset is removed from your balance sheet and replaced with a 'Right of Use' asset, calculated at the present value of the lease.
Servicing and maintenance
Available as an optional extra, we can provide our servicing and maintenance package with your sale and leaseback vehicle. This gives you access to our Driver Assistance line to book routine service work, including MOTs and maintenance work.
Dedicated support
We provide a dedicated implementation manager alongside a LVS account manager who will work with you to deliver ongoing savings. We also offer flexibility through contract extensions and early terminations, detailed fleet reporting and accident management services to help reduce vehicle downtime.
Discuss your Sale and Leaseback options with us
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