We offer our clients the option to reassign vehicles they no longer need. It is also known as novation. Reassignment allows one limited company to transfer a vehicle lease to another limited company saving the original customer early termination fees.
When would a business use reassignment?
Transferring the lease on a vehicle rather than returning it means that the business does not have to pay early repayment charges which can be significant. Typically, businesses use the service when:
- The original company no longer has a requirement for the vehicle – this could be due to a variety of reasons such as vacancies, business downturn, strategic realignment and so on.
- An employee moves employer and it has been agreed between the original and new employer that the driver can transfer their lease agreement.
- In a buy-out where one limited company has been bought out by another limited company and assets need to be transferred.
What are the benefits of taking on a reassigned vehicle?
- Quick vehicle access – usually you can access the vehicle almost immediately.
- Shorter lease term – part of the term has already expired so the commitment will be for a shorter period.
- Potentially lower rentals – vehicle lease rentals may be less expensive than the current new equivalent.
- Warranty cover – a main dealer report confirms the vehicle condition and service history. The balance of the manufacturer’s warranty cover is also transferred, although it should be remembered that this will be a used vehicle so it’s condition may not be immaculate.
Who can take advantage of vehicle reassignment?
Reassignment is available subject to certain conditions:
- It is only available to limited companies
- There must be a minimum of 12 months remaining on the original contract hire agreement
- Payments on the original agreement must be up to date
- The original contract cannot be modified
- Vehicle mileage is within the parameters of the lease
How much does vehicle reassignment cost?
There will be management fees from both the vehicle funder and from CBVC Vehicle Management, which will be set out clearly before vehicle reassignment goes ahead. The cost of novation (reassignment) will vary from funder to funder.
Want to find out more about vehicle reassignment?
Please contact one of the CBVC Vehicle Management team on 0330 822 4500 or email us at firstname.lastname@example.org.
You can see the vehicles we currently have for Novation here