Sale and Leaseback

One of the most common fleet management headaches for fleet owners is disposing of cars when they reach the end of their fleet life. Not only is finding a buyer time consuming but getting a decent return is increasingly difficult in these days of volatile used vehicle values.

Masterlease’s Sale & Leaseback service is designed to release the cash value of your fleet and release you from the day to day burden of administering it. We’ll purchase your company-owned vehicles, settle any outstanding finance and lease them back to you. We then own the vehicles for the remainder of the contract and bear responsibility for depreciation, disposal, vehicle excise duty and administration as well as a range of additional services.

Sale & Leaseback can also be used as a convenient interim stage if you want to switch between owning and managing your own fleet to a full service leasing contract with Masterlease. The hassles of running your own fleet can be transferred immediately, rather than waiting for normal replacement cycles.

· Releasing the cash value of a fleet provides a straightforward method of raising additional funds for your company

· Administrative burden of operating your fleet passes to Masterlease, freeing up valuable management time

· Professional advice on all fleet related issues, the option of risk-free maintenance and access to a comprehensive service package

· Depreciation and running cost risks removed once Masterlease assumes ownership of fleet

· Transparent costs for the duration of the contract, allows you to budget accurately and improve cash flow

· When vehicles reach the end of their fleet life (typically three to four years), Masterlease disposes of them and will implement the most suitable continuing finance option for your business

Advantages of Sale and Leaseback

There are substantial financial benefits to be gained from Sale and Leaseback:

- Releasing the cash value of a fleet provides an alternative and straight forward method of raising additional funds when required.

- The administrative burden of operating the fleet is borne by Masterlease, freeing up valuable management time to concentrate on running the core business. Customers are also offered professional advice on all fleet related issues, the option of risk free maintenance and access to a comprehensive service package.

- Masterlease enables customers to avoid the residual value and running cost risks by assuming the depreciation/disposal risk and becoming responsible for areas such as breakdown cover and road fund licence.

- Transparent costs for the life of the contract allow customers to budget accurately and improve cashflow while being shielded from interest rate rises.

- Vehicles are owned by Masterlease and treated as operating leases, as defined in SSAP 21, and will consequently not appear on the customer’s balance sheet, which may result in an improved gearing ratio.

Sale and Leaseback can be tailored to suit a customer’s individual requirements and resources.

Sale and Altoback is a variation on Sale & Leaseback includes elements of our popular Alto scheme. Under this programme we purchase your fleet and resell the vehicles to individual employees. This transaction is financed by a credit sale agreement between Masterlease and the individual. Using a privately owned car for business in this way can have all kinds of benefits for drivers and companies. For more details please see information on Alto.