One in four finance directors intend to offload company cars

One in four finance directors intend to offload company-owned vehicles in a bid to raise more cash.

This is according to a survey carried out for Lex Autolease by YouGov following an annual audit by the firm, which highlights the growth funds being raised through sale and leaseback agreements.

The Lex Autolease/YouGov Company Vehicle Survey reveals UK firms benefited from a cash injection of more than £50 million in the last 12 months as a result of purchasing thousands of company-owned vehicles.

The popularity of this form of funding – essentially a switch from ownership to contract hire – reignited during the latter part of 2008 and has continued to grow during the worst of the credit crisis.

Andrew Kirby, regional sales director for Lex Autolease said: “For many firms which are looking at ways to finance their business, sale and leaseback is often an ideal solution. It provides an immediate cash injection to service debts or fund investment priorities.

“More companies can benefit from releasing the capital tied up in their vehicles and begin the process of using managed contract hire arrangements to drive down the costs of mobilising employees.”

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