Sale and Leaseback

Helps you free up vital captial currently tied up in your business vehicles



A Sale and Leaseback arrangement releases valuable capital by selling the vehicles you currently own to a finance company, and then immediately leasing them back for a set monthly fee. This can be an attractive vehicle finance option for companies who want to release funds to use elsewhere within the business. It also transfers the risks of ownership to the vehicle leasing company.

Key benefits

  • Frees up capital which can be used more effectively elsewhere
  • Outsource depreciation risks arising from owning vehicles outright
  • Spread the cost of vehicle usage and servicing over 2 – 5 years
  • Simple ‘paper-only’ exercise, with contracts built around your needs

How it works


A Sale and Leaseback arrangement allows companies to release capital tied up within vehicles currently owned and operated by the business. In reality, this is simply a paper exercise whereby vehicle ownership is transferred to the leasing company, with the car or van fleet in question being seamlessly leased back to you for an agreed monthly fee.

This option is frequently adopted by organisations who currently own their vehicles outright. However, where an existing finance agreement such as Hire Purchase is in place, this can usually be settled by the leasing company as part of the agreement.

Vehicles leased back under a Contract Hire arrangement can be removed from the balance sheet and as result reduce company gearing. And by switching to leasing, not only are all depreciation risks completely removed, an optional servicing and maintenance package can help to evenly spread costs and provide protection against inflation.

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