Young Driver has bucked the leasing trend with a cash purchase of its new fleet that’s expected to save money and deliver greater flexibility.

(L-R) Young Driver’s Ian Mulingani, NatWest’s Michelle Watkinson and Lombard’s Raymond Nsemwa

The under-17s driver training school has taken delivery of its brand-new 170-strong Suzuki Swift fleet, which will provide 150,000 driving lessons for children each year.

After 15 years of leasing its vehicles, and multiple fleet changes over that time, the firm has turned to outright purchase to fund its new £2m fleet with the help of NatWest’s asset finance business Lombard.

Ian Mulingani, Young Driver’s managing director, said: “We’ve had a great relationship with NatWest Commercial Banking and Lombard, its asset finance business, for the last three years. We’d been discussing the possibility of a cash loan to purchase for some time, and as we drew near to the end of the lease on our previous Vauxhall Corsa fleet, we just needed the right replacement product to maximise the benefits of buying outright.”

Young Driver said the scales weighed in favour of ownership for the first time. With an expected residual value of 55% after three years/36,000 miles, according to Solera Cap HPI, the Swift’s excellent RVs are expected to offer long-term ownership benefits.

“But we also have the reassurance of a Suzuki warranty of up to seven years/100,000 miles, so there’s potential to keep our cars for longer, improving our balance sheet.

“Furthermore, we no longer have to face punitive fees from a leasing company when the time comes to replace the Suzukis,” Mulingani went on.

The funding deal means that any single car from the fleet can be sold early without penalty, and its portion of the loan paid off. This gives greater flexibility to defleet individual cars early and replace with EVs.

“With the future so uncertain about demand for EVs, it’s impossible to say if new drivers will want to learn in one, or not,” said Mulingani. “By owning the cars, we have the flexibility to react to changing trends and potentially replace some cars with EVs early so that the fleet mix is appropriate for the children we’re training.”

Since the new Suzukis can accommodate children from the age of nine – the design of the previous Corsas dictated 10 years and above – Young Driver also has the potential to increase its earnings by introducing an even younger audience to the joys of driving.

The improved economy from the Swift’s mild hybrid petrol powertrain is also expected to save thousands in fuel costs. Based on the manual-transmission Swift’s official combined fuel consumption of 64.2mpg, Young Driver expects to save just under £20,000 in fuel alone.

Young Driver’s Suzuki fleet will comprise 160 Swift Motion models, powered by a new 1.2-litre, three-cylinder, 12V mild hybrid engine, producing 83hp, and mated to a five-speed manual gearbox. A further 10 Swifts have been ordered with optional CVT transmission for young drivers with impaired abilities, who are not able to operate a conventional three-pedal system. All the Swifts are equipped with He-Man dual controls.

Lombard’s senior relationship manager Ray Nsemwa said: “We are really pleased that Lombard has been able to support Young Driver with financing to help it go the distance by purchasing its own fleet. This has the potential to be transformational for its growth goals – enabling the business to expand its reach and grow its income as it continues its mission to make our roads a safer place.”