Over the next two years KeyFleets will replace the County Durham-based CA Group fleet with 50 Volkswagen Passat and Audi A4 diesels.
The shift to an all-diesel fleet was driven by next year's tax changes to a CO2 emissions-based system.
CA Group has a pooled mileage, maintenance and residual value agreement with KeyFleets, an offering which the Arval PHH-backed firm believes is unique among small and medium fleets. CA Group's individual cars are no longer bound to limits, but instead the whole fleet's performance is averaged out.
At the end of the three-year contract hire period, an open disclosure policy means if KeyFleets sells the cars at a higher price than originally quoted, it splits the profits with CA Group.
Les Hutchinson, KeyFleets regional manager in Stockton, said: 'In offering these additional services, we are ensuring that smaller companies are at last getting the range of products and services that were previously only available to large fleet operators.'