Fleet News

Van scheme allows fleet capital to be released

NORTHGATE Vehicle Hire has launched a sale and rentback product for organisations that want to release the capital tied up in their vehicle fleets.

Called Sale and Rentback, the programme will see Northgate buy all vans from a business at an agreed price, and then rent some or all of the fleet back through its Norflex Flexible Fleet Hire scheme, depending on the customer's transport needs.

Outstanding finance is settled by Northgate, with any resulting balance returned to the customer, and over a period of time Northgate will replace aging vehicles with new vans from its own fleet.

Steve Smith, managing director of Northgate, said: 'We aim to bring the customer a way of unlocking capital tied up in their fleet, not just in the short term, but also in the long term.

'Eventually the fleet will become a Norflex fleet. The benefit being the customer gets increased flexibility in their business. The customer has the ability to add, change or reduce their fleet at any time.'

The company is bullish about its prospects, looking to raise its fleet to 50,000 vehicles in the next two years. At present it runs 37,000 units, and the firm is hoping the Sale and Rentback plan will provide the stimulus to reach its target.

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