Peter Vardy considers sale of FlexAuto leasing business

Peter Vardy Global is “exploring options” for its vehicle leasing business, FlexAuto, which launched in 2022.

Fleet News understands staff have been informed of its potential sale, which comes a few weeks after it announced a £250,000 investment in new IT infrastructure.

Peter Vardy, CEO of Peter Vardy Global, told Fleet News: “I’ve worked closely with (managing director) Karl Howkins to lead FlexAuto through a period of rapid growth.

“Its flexible, month-to-month leasing model has grown with investment in cutting-edge technology to enhance the customer experience and deliver real-time data.

“Peter Vardy Global is an investment company that backs companies to drive innovation and scale high-potential businesses.

“As such, we are always exploring options for our portfolio companies that support their evolution.”

When it launched FlexAuto in 2022, it promised business customers access to a range of cars and commercial vehicles for a single monthly payment.

It said that vehicles would never be more than three-years-old, there would be no minimum rental period and customers would have the flexibility to suit changing requirements.

Group operations director, Derek Longmuir, was tasked with leading the new business rental division, which complemented the company’s vision of ‘Mobility for Everyone’.

FlexAuto said it would draw stock from Peter Vardy’s network of 15 dealerships across Scotland, with franchises including BMW, Mini, Jaguar Land Rover (JLR) and Porsche.

Howkins (pictured below), who was managing director of Citroen UK before leading Sogo from launch in 2021, was appointed MD at FlexAuto in November 2024, after leaving Sogo in March of the same year.

Talking about the recent IT investment, Howkins said: “We aim to lead the industry through innovation and our latest investment will give fleet managers the tools they need to drive efficiency.

“Our technology and expert team are able to enable fleets to accelerate greener fleets and reduce carbon emissions without compromising operational performance.”

At the start of the year, Peter Vardy Group reported losses of £10.93 million in its financial results, marking a sharp contrast to the previous year's pre-tax profit of £4.8m.

The group’s turnover for the year ending December 2023 fell 6.6% from £590.5m to £551.3m, due to a series of strategic changes including divesting from its used car supermarkets and focusing on luxury brands.

Turnover is expected to fall further in its next annual accounts as it sold off much of its franchised dealership business to Park's Motor Group in December 2024.

The decision to close the Peter Vardy Carz used car supermarket sites, a move driven by a shrinking supply of sub-five-year-old used cars due to production stoppages during the pandemic, had a significant financial impact with the closure, alongside one-off costs, amounting to £15m, the accounts show.

Despite these setbacks, Vardy emphasised that the restructuring was necessary for long-term growth, positioning the group for a more sustainable future.