“Many business operators don’t realise there is a simple solution to release the cash tied up in their vehicle fleet,” says FleetPartner’s Clayton Coe.
“When we discuss this with our clients, it’s often like seeing a light bulb go on in a dark room since sale and leaseback provides solutions to many issues that typically encumber growing businesses.
“Finding ways to preserve local business interests,” says Clayton “involves taking larger corporate solutions and fine tuning them to the unique situation facing their specific business. Sale and leaseback is an excellent example.
“The sale and leaseback concept has been around for some time in the corporate sector, but many don’t understand it or are even aware that FleetPartners offers it.
“Sale and leaseback could well be what changes the growth trajectory of a business, by allowing it to invest money previously tied up in its vehicles back into the business and allowing staff to return to their core activities by fully outsourcing the vehicle fleet management.”
Here’s how it works:
FleetPartners enters a sale and leaseback arrangement with a company that owns vehicles – the number can be anywhere from 1 upwards.
The first thing to happen is a summation of your current fleet, vehicle registrations, models, age, kilometres travelled, any fitted accessories and more.
At this point, FleetPartners will gain an insight into your business, discuss how your fleet is utilised and find out how your fleet can help achieve your business goals, be that to:
• Reduce emissions,
• Comply with health and safety, or
• Improve efficiencies.
The next step is for FleetPartners to carry out a free fleet assessment. This will determine the economic and fit-for-purpose life left in each vehicle and make recommendations with a suggested course of action to mitigate risk, maximise fleet utilisation and efficiency.
FleetPartners will then present a financial offer to purchase your fleet based on either market value or book valuation which, if accepted, will be paid in a lump sum by FleetPartners within an agreed timeframe. The offer will include lease terms on the fleet which may vary from vehicle to vehicle, depending on the age and mileage and your business goals.
This effectively concludes the ‘sale’ part, with the lump sum payment headed to your company’s bank account as an immediate cash injection to be used however your company wants to use it.
FleetPartners total solution includes the management of the fleet, which will be leased either via a Fully Maintained or a Managed Maintenance Operating Lease. This means you can roll out one fleet policy to your drivers and your fleet will be managed by fleet experts ensuring safety and cost controls are in place. Customers will also enjoy access to benefits such as relief vehicles, discounted fuel cards and accident management, to name a few.
“If you are looking at your company car park and seeing only owned depreciating liabilities, talk to us to convert it to cash,” explains Clayton.
To find out more, visit the
www.fleetpartners.co.nz website or talk to your local FleetPartners consultant.
