Vehicle Sale/Leaseback – A sale, or leaseback, is a service where a fleet management company purchases your company vehicles for a pre-determined amount and leases it back to your company. Sale/leasebacks can be done with either company-owned vehicles or vehicles that are currently leased or financed through another lessor/lender.
These days, managing cash flow and releasing cash back into your business are important steps in the sustainability and growth of your business. A sale/leaseback can be a valuable option for fleets of all sizes to help improve cash flow while lowering total fleet operating costs.
Benefits of a Sale/Leaseback Include:
- Freedom to release capital back into your business. If vehicles are owned, tapping into the fleet as a source of cash is the most common reason companies consider selling their fleet and leasing it back.
- Consolidate to one fleet management partner for all your vehicle needs.
- Advantage of services fleet management companies offer including vehicle acquisition, fuel management, maintenance management, analytics, and vehicle licencing.
- Utilize a fleet management company’s expertise with effective vehicle cycling/remarketing.
- Potential reduction in income taxes and improved balance sheet performance.
- Ability to potentially secure or utilize other credit lines for business operations and growth.
While a sale/leaseback can be an invaluable option to help improve cash flow and reduce overall fleet operating costs, it might not be the right solution for all vehicle fleets; consider what your options are. To learn more about sale/leasebacks or other services that can help you better manage your fleet of vehicles safely and cost-effectively, contact us today.