Sale & Lease Back

How does it work?

1. You sell your vehicles to Arval for a mutually agreed price based on their market value or your book value.
2. At the same time, you lease them back from Arval, which registers the vehicles in its name or yours, so you don’t have to pay the road fund tax again.
3. You continue to use the vehicles in return for a monthly lease payment which is reported in your profit and loss account as an expense.
4. Since the vehicles no longer belong to you, you only pay the VAT on the portion yet to be amortised and you recover part of the VAT paid in advance on the purchase of the vehicles.
5. Arval takes responsibility for the operational management of the fleet: maintenance, tyres, roadside assistance, insurance, replacement car, etc.

Advantages

• Lighter balance sheet: since you are no longer the owner, the value of the vehicles is removed from your balance sheet. The lease payment is booked as an expense in your profit and loss account. What’s more, you no longer have to prefinance the VAT.
• Transparency: you make a single monthly lease payment covering all the services and operational risks.
• Expertise: Arval is responsible for checking all the invoices. You benefit in this way from economies of scale, which translate into a competitive lease payment.
• Less admin: a single point of contact takes charge of the full operational management of your fleet, gaining you precious time.
• Advice: Arval provides you with all its expertise in the field of car policy, driver awareness programmes, etc. to achieve the more efficient and responsible management of your vehicle fleet.

Good to know

• You have the option of retaining the registration plates of your vehicles, so that you do not have to pay the road fund tax a second time. This also means that drivers are not required to take the car for a technical inspection.
• If you wish, Arval can take responsibility for all the administrative aspects associated with the transfer of ownership: technical inspection, return of registration plates and putting the vehicles in order.
• If you no longer wish to use certain vehicles, which will not therefore be included in a sale and lease-back, Arval can organise their sale and transfer you the proceeds.
• You can also group the insurance cover via Arval, subject to prior evaluation of the condition of the cars and their repair, if necessary, at the expense of your current insurer.
• Winter tyres can be included in the sale and lease-back contract.

Useful link(s)

ARVAL NV
Ikaroslaan 99
1930 Zaventem
Tel. : +32(2) 240 01 99

Sale & Lease Back is offered by Arval SA/NV, a specialist subsidiary of the BNP Paribas group.