Fleet Finance Options
It’s important to choose the right vehicle finance method to suit your business. With the wide range of choices available and the everchanging tax rules, it is quite a lot to consider.
Sale and Leasback
Here at Select Fleet Solution we realise just how much of an impact the costs associated with vehicle depreciation can have on a business.
And a Sale and Leaseback arrangement is a popular pathway used by employers to reduce the risks associated with the future value of a vehicle as an asset.
With Sale and Leaseback, a company sells its existing fleet of vehicles to a third party contract hire firm, who then value it, provide a cash injection to the company and also lease the vehicles back at an agreed rate.
Our experts here at Select Fleet Solutions can assist you through this process via our large panel of leasing funders.
Sale and Leasback Explained
The idea here is to release capital tied-up in an existing owned fleet of vehicles, or to accelerate the benefits of moving from purchased vehicles to a leased fleet.
Through Select Fleet Solutions, we can purchase all, or some, of your owned fleet, and then lease the same vehicles back to you at a rate that makes sense to you.
Why would a business do this?
Not only will this create a cash injection for your business through selling the vehicles at their current market price, but this will also provide you with immediate removal of the financial risk of owning vehicles.
Contact your Select consultant who will be pleased to discuss your fleet, and how a Sale and Leaseback may benefit you.
Sale and Leasback Frequently Asked Questions
Sick of seeing the value of your fleet vehicles plummet with each passing month? With Sale and Lease back you sell all, or some, of your existing fleet to a third party contract hire firm, such as Select Fleet Solutions, who then lease the vehicles back to you at an agreed rate. The cost of depreciation is suddenly off your business’ books.
Depreciation - where a vehicle’s market value falls over time - can be a huge cost for businesses operating a fleet. But with Sale and Leaseback, you’re able to negate the cost of this depreciation by moving from an owned to a leased fleet instead.
By moving your fleet from owned to a leased vehicles, your business will receive a welcome cash injection from the sale of the vehicles. You’ll also remove yourself from the financial risk of owning the vehicles - which chiefly comes via depreciation.
The Sale and Leaseback pathway sees a business selling its fleet to a contract hire firm before simply leasing those very same vehicles back once more. It’s a seamless transition where the same vehicles remain in the fleet, but they’re simply managed in a different way.
Want to know more about our fleet solutions? Get in touch now with our fleet solutions team on our dedicated phone number 0118 304 8690 or simply email them at corporatefleet@selectfleetsolutions.co.uk.
