LOMBARD Contract Hire has launched a cut-price leasing product, called Ex-Fleet, for nearly new cars. All Ex-Fleet cars are nearly new and VAT qualifying, which means they benefit from the same VAT benefits for leasing as new cars.

Customers can choose from a database of up to 800 cars at any one time, updated hourly, and accessed on-line via modem through Lombard's dealers and distributors. This wide selection is designed to overcome previous difficulties in nearly new contract hire caused by the lack of choice and availability.

More than 50 Ex-Fleet contracts have already been signed, and Lombard expects to sign up around 1,000 by the end of the year. Ex-Fleet sample prices over a three year, 30,000 mile contract, include a Ford Escort 1.4 Encore three door hatchback for £145 per month, compared to £214 for the same car new; a BMW 316i four door saloon auto for £299 per month, compared to £329 for the new car; and a Vauxhall Omega 2.0 five door estate auto for £311 per month, compared to £462 for the new car.