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TRADITIONAL fleet leasing is facing a challenge from a new business subscription service.

Developed by leasing broker Green Bison Group, provides access to vehicles on a 12-month contract with a single monthly fee covering fully comprehensive insurance, road tax, servicing, maintenance and repairs, UK breakdown, accident cover, glass repair and replacement tyres – subject to fair wear and tear.

Vehicles are guaranteed not to be more than 12 months old or 12,000 miles and can be handed back after the first three months with 14 days’ notice.

The single monthly fee is designed help businesses manage cash-flow and fleet costs. Caasta also offers the option to outsource existing fleets under a sale and lease back arrangement, which sees the subscription service take on existing financing and fleet management.

The service is is aimed at small and large fleets, avoiding long-term contracts and up-front payments for company cars.

It also works alongside salary sacrifice for ultra-low emission vehicles and to help businesses back in their feet as they emerge from the Covid-19 pandemic.

Caasta chief executive Mike Minahan said: “We have already signed up a number of businesses who are keen to experience a new flexible approach to managing their business fleets without locking themselves into a typical four-year contract.

“They can keep their options open while meeting their immediate needs for employees to be on the road, in a fully insured and maintained vehicle while helping them to manage cash-flow with a single fixed monthly fee per vehicle.

Fleets can also benefit from a salary sacrifice solution to enable employees to benefit from tax incentives for ULEVs – with the option to switch to a conventional petrol or diesel vehicle at 12 months if it does not suit their needs.

“As with the subscription service, this is available to small, medium and large enterprises and there is no minimum employee requirement.”