Sale and leaseback

What is Sale and leaseback?

Sale and leaseback gives you a way to simplify the administration and costs on a vehicle fleet you own, while also releasing a lump sum. It can be ideal for companies with medium-sized to large fleets that are looking for greater efficiency, predictable costs, reduced risk, simplified administration and additional capital.

How does it work?

As the name suggests, you sell your vehicles to us and then lease them back. We pay you for the vehicles and you sign a contract hire agreement over 24 to 60 months, with fixed monthly rentals based on duration and annual mileage. Your drivers continue to use the same vehicles and we manage them for you, in just the same way we would on any lease agreement. When the contract is over, we handle the sale of the vehicles.

There are five steps for a sale and leaseback:

1.
Evaluation: We review your fleet on a range of parameters, including purchase price, special equipment and mileage.
2.
Analysis: We explore what you need from the fleet now and in the future, and then calculate your leasing rate.
3.
Signature: You sign our service agreements and individual contracts.
4.
Payment: We pay you for the fleet or cancel existing financial agreements.
5.
Conversion: We gradually move you over to outsourcing as well as providing driver information.

Points to keep in mind

We can purchase passenger cars, light commercial vehicles and specialist vehicles.
You can currently own the vehicles or have them on finance.
Once we have bought them, the vehicles are registered to us. This reduces your administrative burden and eliminates residual value risk.
You’ll have fixed monthly rentals (based on contract duration and estimated annual mileage) that make it easy for you to control your budget.
We can structure the financial details to suit your specific requirements and budget periods.
When the deal has been finalised,you will no longer have the depreciating asset on your balance sheet, but you will have a ‘Right of Use’ asset on the balance sheet, based on the present value of the lease.
We provide a dedicated implementation manager to look after the transition.
We also provide an Ayvens account manager to work with you to deliver savings into the future.
We can offer you contract extensions and early terminations, so you have the flexibility you need to deal with the unexpected.
We provide detailed reporting on the fleet and its use.
We offer accident management to reduce downtime in your fleet.