A ‘green’ private hire company is the latest to agree to a sale-and-leaseback deal.

Lombard Vehicle Management will buy and leaseback greentomatocars’ fleet of 54 vehicles including 20 new Toyota Prius hybrids and supply new vehicles on an ongoing basis.

To date, the majority of the greentomatocars fleet has been funded on hire purchase, as company co-founder Jonny Goldstone explained:

“When we started the business in 2006, hybrid residual values were uncertain and this had to be reflected in contract rates.

"Residuals are now much more solid.

“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.”