Virgin Cars is targeting the UK fleet market after forming a partnership with vehicle management company Fleetlease.

Initially the new operation, called Virgin Direct, will target private motorists and ex-company cars through Nova Vehicle Finance, the consumer credit division of Fleetlease. The two companies have signed a two-year agreement which will make Nova Vehicle Finance the sole supplier of credit facilities to Virgin Cars online customers.

However, both companies expect the links between them to expand rapidly with Virgin Cars targeting companies running small fleets, user-chooser fleets and fleets buying used company cars (potentially sourced from Fleetlease).

Virgin Cars launched a PCP product backed by ARVAL PHH at last year's British International Motor Show. That deal has now been revoked because, said Virgin Cars chief executive officer Ian Lancaster: "We were looking for secured lending finance to help us provide a wider range of finance products than we do presently."