Duration: 2 days

Instructor: Fatih KURAN

Objective

This workshop provides a detailed and hands-on approach to operating leasing, covering all aspects, from pricing to residual value management. It is designed to equip participants with practical skills for preparing and analyzing leasing offers, profitability calculations, and scenario-based decision-making in operating leasing.

Who Should Attend

• Leasing professionals

• Finance and accounting specialists

• Fleet managers

• Machinery vendors

Purpose

• Develop practical skills in creating detailed operating leasing proposals.

• Learn profitability calculations and VAT implications.

• Strengthen decision-making capabilities through scenario analysis.

Content

1. Time Value of Money

• Future Value Calculations

• Net Future Value of Cash Flows

• Present Value Calculations

• Net Present Value (NPV) of Cash Flows

2. Interest Rates

• Nominal Interest Rate

• Compound Interest Rate

3. Fixed Lease Payment Calculations

• Payments at the Start of the Period

• Payments at the End of the Period

• Payments with Down Payments

• Payments with Grace Periods

4. Internal Rate of Return (IRR)

5. Amortization Schedules

• Amortization Table for Cash Flows

• Amortization Table for Variable Payment Lease Plans

6. Non-Fixed Lease Payment Schedules

• Grace Period Lease Structures

• Seasonally Variable Lease Structures

• Coefficient-Based Lease Structures

• Balloon Payment Lease Structures

7. Operating Leasing Applications

• Residual Value and Its Impact on Pricing

• Pricing of Maintenance and Repair Costs

• Usage-Based Lease Calculations

8. Residual Value Calculations and Influencing Factors

• VAT and Other Tax Rates

• Effects of Inflation

• Effects of Devaluation

• Other Factors

9. Impact of Fixed Asset VAT on Pricing

10. Reflecting Tax Advantages in Pricing

11. Specialization and Full-Service Transactions

12. The Three Profit Centers of Operating Leasing

13. Fleet Management Applications and Pricing

14. Pricing Full-Service Transactions

• IRR Impact of Volume Price Agreements

• IRR Impact of Maintenance and Repair Agreements

• IRR Impact of End-of-Term Agreements

15. New Products and Their Pricing

• Renewal Options Before Lease Term Ends (Technology Refresh)

• Early Termination Options (ETO)

• Leveraged Leasing

• TRAC Leasing (Terminal Rental Adjustment Clause Leasing)

• First Amendment Leasing (Leases with Interim Purchase Options)

• Multi-Lessee Lease Agreements

16. Pitfalls in Operating Leasing Pricing

17. Comparison of Income Statement and Cash Flow and Residual Value Impact

18. Case Study

• Operating Leasing vs. Equity Purchase Comparison

• Operating Leasing vs. Bank Loan Comparison

* The course involves Excel applications, and participants are required to bring laptops with Excel 2013 or a higher version installed.