Vehicle Management has agreed a sale-and-leaseback deal with
greentomatocars, covering the taxi firm’s fleet of 54 Toyota
greentomatocars, which specialises in environmentally-friendly
private hire, during the first half of 2009.
The decision to opt for sale-and-leaseback was not prompted by
cashflow issues, said greentomatocars co-founder Jonny Goldstone,
but rather by the solidity of residual values for used hybrid cars,
and the wish to outsource remarketing duties.
“When we started the business in 2006, hybrid residual values
were uncertain as the vehicles were new to the market, and this had
to be reflected in contract hire rates. Residuals are now much more
solid as the vehicles are established and legislation is
encouraging their use,” he commented.
““In these circumstances we can confidently commit to a leasing
strategy and can enjoy the benefits. Not only are we free of
residual value risk but the administrative burden of disposing of
the vehicles is removed. With a large and growing fleet of vehicles
we were in danger of becoming a used car dealership rather than a
private hire company.”
The taxi company had previously acquired its cars on hire
purchase – mostly arranged through Lombard.
Stuart Brown, key fleet business development manager at Lombard
Vehicle Management, handled the deal.