A survey by YouGov/Lex Autolease, has shown that one in four (27%) financial directors intend to offload company-owned vehicles in a bid to raise more cash.

The survey follows an annual audit by Lex Autolease which highlights the growth funds being raised through ‘sale and leaseback’ agreements. 

It found that firms received a £50m cash injection in the last 12 months as a result of it purchasing thousands of company-owned vehicles.

The popularity of this form of funding – essentially a switch from ownership to contract hire – reignited during the latter part of 2008 and has continued during the credit crisis.

Andrew Kirby, regional sales director for Lex Autolease said: “For many firms who are looking at ways to finance their business, sale and leaseback is often an ideal solution. It provides an immediate cash injection to service debts or fund investment priorities.

"More companies can benefit from releasing the capital tied up in their vehicles and begin the process of using managed contract hire arrangements to drive down the costs of mobilising employees.

"Speed is often the key issue and our experience in dealing with this form of finance ensures that we’re able to move quickly and get the funds released immediately. It’s faster than many other forms of funding and firms have the reassurance that we have both the financial capability and fleet management expertise. Sale and leaseback often means we will stay with them for at least three or four years to help run all aspects of their fleet.”

Lex Autolease says that within days it has been able to value customers’ entire fleets and provide access to funds.

Throughout the process, the customer retains its fleet, employees keep driving the same vehicles, and day to day operations are unaffected.

Andrew Kirby concludes: “Contract hire is preferable in many ways to ownership, not least because of the reduced risk of vehicle depreciation and maintenance. But on the employee side, it’s also a more flexible way of offering staff greater choice within their benefits package and enticing high-quality recruits with the promise of a new company vehicle rather than an old or shared pool car.”