Sale & Leaseback

If your company owns a fleet of vehicles and your business requires an injection of capital or you want to utilize your capital tied in the fleet for other critical business needs then the best option for you is Sale & Leaseback

Under the terms of Sale & Leaseback, a Car Leasing Company in UK purchases the fleet of your company and allows you to lease it back by transferring them on to a contract hire or leasing agreement. The company continues using its’ fleet, whilst raising the valuable capital that would normally be tied up.

Through Sale & Leaseback, UK Contract Hire Vehicle Services enable you to switch to a more tax efficient method of funding whilst raising capital for use elsewhere within your business.

In Sale & Leaseback you settle for a realistic market value with a Car Leasing Company in UK which buys your fleet, acquires title to it and then leases it back to you. This provides you with immediate cash injection along with the benefits of a traditional contract hire deal. Depreciation of vehicles also no longer remains your concern.

A strong alternative to taking out further loans, Sale & Leaseback prevents your company from plunging into debt. The Car Leasing Company in UK also removes the risks and difficulties associated with fleet management. You are able to replace your fleet and pick newer models at the end of the stipulated period.

Monthly payments

Sale & Leaseback requires you to provide essential information regarding your fleet including mileage, registration dates, maintenance history of the vehicle and description about model. The Car Leasing Company in UK then values your vehicle according to industry guides like CAP, Glasses Guide or any other guide. Based on factors such as anticipated resale value, duration of the agreement and mileage, your monthly payment is fixed and your deal gets underway.

Financial benefits

Rentals paid on the vehicle after a Sale & Leaseback agreement are deductible against corporation tax. Service and maintenance elements and 50 to 100% of VAT on rental are also recoverable. Further it improves your company’s gearing ratios as the vehicles are not recorded on the Balance Sheet.

Apart from providing your company with immediate cash injection, Sale & Leaseback improves your balance sheet through the sale of fixed assets. It also makes your budgeting far simpler as you make fixed monthly payment and you no longer have to worry about re-sale and depreciation of the vehicles.