Firms look to company car sales to raise cash

Published on Tuesday 9 March 2010 20:17

MORE than one in four financial directors intends to sell off company-owned cars in a bid to raise cash, according to a survey published yesterday.

The study by YouGov and Lex Autolease found 27 per cent of businesses were planning to hand over the keys to company-owned vehicles.

The survey followed an annual audit by Lex, which highlighted the growth funds being raised through "sale and leaseback" agreements.

Lex said UK companies had benefited from a cash injection of more than 50 million in the past 12 months after the leasing company purchased thousands of company-owned vehicles.

The firm said this form of funding – essentially a switch from ownership to contract hire – had been re-ignited during the latter part of 2008 and had continued on a growth spurt during the worst of the credit crunch and ensuing recession.

The company said many financial directors were considering the move to take cars off their balance sheets.