Sale and Leaseback: what you need to know
When it comes to making choices about the ownership and financing of your fleet, finding the most cost-effective, flexible, and efficient solutions can be challenging. One option that can provide you with immediate financial advantages and operational benefits is Sale and Leaseback. This blog outlines the details of Sale and Leaseback, how it works, and the potential advantages for your business.
What is Sale and Leaseback?
Sale and Leaseback is a fleet financing solution which can unlock significant financial and operational benefits for your businesses, through selling a vehicle you own to a leasing company and continuing to use it. This is done under a lease arrangement for a set period of time and mileage.
How does Sale and Leaseback work?
Essentially, Sale and Leaseback is a two-step process. First, you transfer the ownership of your vehicle to a leasing company. This transaction unlocks the capital you have tied up in the vehicle, providing an immediate boost to your cash flow.
The 'Leaseback' part of the process kicks in immediately after the sale of the vehicle. You lease the vehicle back from the leasing company (just like you might with a Contract Hire vehicle) under an agreement – allowing you to continue using the vehicle for your business operations.
The advantage of this arrangement is that you continue to have the use of your vehicle, while also benefiting from the immediate injection of cash from the sale. Additionally, this allows you to mitigate the financial risks associated with vehicle ownership, such as unpredictable resale values and unexpected repair costs.
The benefits of Sale and Leaseback
Ready to take the next step towards financial flexibility and improved operational efficiency?
Sale and Leaseback could be the ideal solution for your business, and we’re here to help you make the process as seamless as possible.
Get in touch with our friendly and experienced team on 01252 976 010 to discuss your specific needs and learn more about how Sale and Leaseback could work for your fleet.
