Contract Hire Car or Van Sale and Leaseback
Sale and leaseback (or sale and hireback as it is sometimes called) is a way of instantly contract hiring your vehicles from day one. You can release the cash tied up in your cars or vans, by selling them to the contract hire company and leasing them back to them, in one easy transaction.
Cars and vans will depreciate in value and you can use the cash tied up in your fleet of vehicles to much better use invested back into your business.
If any existing vehicle finance is still outstanding, on any of your vehicles, the Contract Hire company can settle this directly with the relevant finance companies and can then pay you the remaining balance of cash.
Ask one of the Contract Hire Partners for more information if you are looking for a cash injection and currently own any of your current vehicles, or even if they are financed on hire purchase or finance lease.
Key features and benefits of a Contract Hire sale and leaseback
- An instant cash injection for your business, plus any outstanding car or van finance can be settled as well.
- No need to worry about a depreciating asset and the risk around disposal of your vehicles anymore as this can be transferred to the Contract Hire company.
- A Car or Van Maintenance Package can be built into your contract thereby allowing fixed cost maintenance and routine servicing to be provided.
- You can transfer your fleet to the contract hire company in one transaction thereby gaining the administration and risk protection benefits of contract hire immediately.
- Fixed cost and risk free motoring is available from day one on all of your vehicles.
- Your car or van fleet can be taken off your company balance sheet to reduce your company gearing.
Normal information required for a Car or Van Contract Hire sale and leaseback quotation
- A copy of your vehicle V5 registration documents.
- The mileage readings of your vehicles, the dates they were taken and what future annual mileages you expect the vehicles to do.
- Whether you want with or without maintenance contract hire.
- How long you want to keep the vehicles for.
- Details of any outstanding finance and which companies the agreements are with.
- How much you want for the vehicles i.e. your asset book value or market value.
- It will vary from each contract hire company, but as a general guideline a car cannot usually be over four years old and a van over five years old, to be considered for a sale and leaseback. They are too old basically.
- This does usually include having a minimum contract period of six months to run.
- In other words a car cannot usually be older than 42 months and a van 54 months.
If you are interested in a Car or Van Contract Hire Sale and Leaseback then ask one of the contract hire partners on the site for more information.
Compare Contract Hire Ltd cannot be held responsible in any way concerning the accuracy of the above information. Please seek professional advice from your accountant before proceeding on a sale and hire back.
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