Sale and Feedback is the process of selling your owned
vehicles to a fleet leasing company, and then lease the vehicles back from them
for a reasonable monthly payment. This is one of the cleverest car leasing options to handle your
business fleet. It frees up your business’s capital and improves cash flow, and
at the same time eases your management team from the responsibilities of fleet
management and maintenance.
Like any other business owner, you may wonder how
exactly this method is beneficial to your business in the long term. Sale and
leaseback offers you a quick way to release the capital held up in your fleet
management budget and pump more cash into the ongoing projects that require
immediate investment. This is especially useful when you are pinching for cash
to handle your new or ongoing projects.
In addition to the advantage of releasing capital, by
choosing to sell and leaseback your vehicles, you can stop worrying about the
vehicles’ depreciating value. Now that you have improved cash flow, you can
rethink your business’s funding strategy according to the current requirements.
With the car leasing company under
control of the management and maintenance of your fleet, you can pay a small
fixed amount every month and use your vehicles at ease, free from all worries
of repair and servicing expenses.
At the end of the contract, you don’t have to worry
about the vehicle’s resale value as it comes under the car rental company’s
risks. After the disposal of the current vehicles, you can renew the contract and
get your business fleet restored with new and efficiently managed vehicles. Reputed
Fleet services like ALD Automotive
also offer helpful services like handling fuel management, accidents and 24
hour on-road assistance. Sale and Leaseback is clearly a win-win deal for any
business with vehicle fleet.