|
Operating Lease |
 |
|
Operating leases are basic contract hire style funding arrangements that include no service provisions such as repair and maintenance. They are utilised by larger fleet operators who have in place either internal or outsourced professional maintenance management facilities to properly plan and control service events and to control costs. |
|
Contract Purchase |
|
|
Contract Purchase is very similar operationally to contract hire, but is built on a hire purchase funding platform rather than on a leasing arrangement. Historically, this has been an attractive option for funding expensive cars or for companies with unusual VAT or Corporation Tax profiles. However, in the current tax environment there are very few situations remaining where this funding option presents any advantage, but Activa retains the availability of Contract Purchase for this niche requirement. |
|
Sale and Leaseback |
|
|
Businesses that have historically operated an outright purchase policy can make the transition to contract hire more effectively by converting the existing fleet via a sale & leaseback arrangement whereby Activa purchases the legacy fleet and then hires them back to the client. This has 3 important benefits. Firstly, the client enjoys a valuable cash injection equal to the value of the previously owned vehicles. Secondly, the client immediately gains all of the benefits that contract hire brings across the whole vehicle fleet. And thirdly, all drivers gain immediate benefit from common procedures and enhanced service levels. |
|
Transitional Fleet Management |
|
|
Businesses switching to Contract Hire may well choose the Sale & Leaseback route to gain immediate full benefits across their whole fleet, but if they do not, or they are still have some remaining legacy vehicles under their previous policy option, Activa has a very effective transitional fleet management service that applies professional controls to "manage out" these vehicles on behalf of the client. This provides equality of service to ALL drivers whilst enabling costs to be controlled on a budget basis. |
|
