The country’s largest vehicle lease providers have distanced themselves from the practice of selling cars that are still in use with their fleet customers.

Lombard, Masterlease and Arval have all confirmed that they do not offer cars for sale before they have been returned by fleet customer.

It is understood that Lex Autolease also does not allow its cars to be offered for sale before they have been defleeted.

The practice involves dealers being provided with details of cars that are still being driven by company car drivers and often have weeks to go before they are de-fleeted.
Dealers then offer these cars for sale to private motorists.
Other resellers, such as Autoquake and its pre-order service, offer fleet cars that have not come off lease direct to private buyers.

The practice can offer major savings to lease companies.

However, while it may be good news for lease companies, it could mean major headaches for fleet managers, as Lombard explains: “Lombard Vehicle Management does not sell cars to drivers or to dealers before the end of the contract.

"In this way we avoid unnecessary costs and we do not create problems for fleet managers.

"This is particularly important in the current economic conditions, when contract extensions, manufacturer delivery lead times and other factors mean that it has become increasingly common for contracts to continue past the original end date,” said Richard Richmond, Lombard’s head of remarketing.

However, Epyx, which operates the 1Link Disposal Network that provides details of cars still on lease to dealers as one of its services, said despite the leading lease providers’ stand, there is a growing appetite from for the service.

“This is to everyone’s benefit,” said Ken Trinder head of business development at Epyx.

Read the full version in the October 22 issue of Fleet News.