The leasing arrangement sees Fleetcare, the Birmingham-based contract hire subsidiary of Evans Halshaw which has more than 5,000 vehicles under management, waive all excess mileage charges in return for Compass bearing the residual risk - allowing the risk premium to be removed from payments.

Fleetcare is responsible for all supply, disposal and maintenance needs for the 850-vehicle fleet, which operates from 30 different offices across the UK.

The company turned to contract hire from outright purchase a year ago and placed its fleet with Swan National and AT&T Automotive Services. However, while it wanted to keep its capital 'unlocked' the company wanted to reduce costs further and negotiated the Fleetcare deal. Compass operates a graded car fleet system with a number of car choices available at each level, as well as a light commercial vehicle fleet. The funding source for each vehicle is chosen on an individual basis by Fleetcare.