Sale & leaseback

A number of companies have historically preferred to buy their fleet outright. Apart from denying the company valuable funds for business development it is not necessarily tax effective.

It is proven that some rental allowances can outweigh capital allowances claimed against corporation tax on certain vehicles. This is normally the case with the more expensive cars as the government cap the write down allowances available.

Sale and Leaseback is a way of recouping the capital laid out in your fleet and transferring them to a Contract Hire or Contract Lease facility, whereby the provider of the package will purchase the vehicles from the company and Lease them back.

This scheme also takes away any risk on the disposal at the end of the contract and frees up valuable management time.

Benefits of Sale and Leaseback

• Release of capital
• Reduction in administration
• Can be offered for all vehicles, new or used
• Maintenance packages available
• No risk on residual values
• Fixed monthly payments
• Streamlines cash flow