Duration: 2 days

Instructor: Fatih KURAN

Objective

This program focuses on evaluating operating leasing from the perspectives of lessees, lessors, and vendors. It incorporates various product types and applications into pricing practices, including residual value, VAT, and additional services. Participants will learn profitability and efficiency calculations, fleet management applications, key considerations in leasing transactions, and documentation processes.

Who Should Attend

• Leasing professionals

• Fleet managers

• Finance and accounting professionals

• Machinery vendors

Purpose

• Understand the fundamentals of operating leasing and its development process.

• Explore the unique criteria that differentiate operating leasing from financial leasing.

• Learn profitability and efficiency calculation techniques.

• Gain knowledge about fleet management applications and pricing practices.

Content

1. Overview of the Leasing Sector

• Daily Rental

• Operating Leasing

• Financial Leasing

2. Understanding Operating Leasing

• Full Definition

• Development Process

• Key Criteria Differentiating It from Financial Leasing

3. Operating Leasing Applications

• Residual Value and Its Impact on Pricing

• Including Maintenance, Repairs, Tires, Fuel, Insurance, and Tax Costs in Pricing

• Lease Calculations Based on Mileage or Usage

4. Residual Value Calculations and Influencing Factors

• VAT and Other Tax Rates

• Effects of Inflation and Devaluation

• Additional Factors

5. Impact of Fixed Asset VAT on Pricing

6. Operating Leasing Tax Advantages and Their Calculation

7. Accounting and Tax Perspectives

8. Reflection of Tax Advantages in Pricing

9. End-of-Term Options

10. Skills Required to Offer the Product

11. Case Studies

• Unique Benefits from Lessee's Perspective

• Lessee Profiles Suitable for the Product

• Unique Benefits from Lessor's Perspective

• Unique Benefits from Vendor's Perspective

12. Specialization and Full-Service Transactions

• Cost Reduction and Control Objectives in Operating Leasing

13. The Three Profit Centers of Operating Leasing

14. Fleet Management and Pricing Applications

15. Pricing Full-Service Transactions

16. IRR Impact of Agreements

• Volume Price Agreements

• Maintenance and Repair Agreements

• End-of-Term Agreements

17. New Products and Pricing

• Renewal Options Before Lease Term Ends

• Early Termination Options

• Leveraged Leasing

• TRAC Leasing (Terminal Rental Adjustment Clause Leasing)

• First Amendment Leasing (Leases with Interim Purchase Options)

18. Common Pitfalls in Operating Leasing Pricing

19. Profitability and Efficiency Calculations at the Transaction End

20. Residual Value Impact on Income Statement vs. Cash Flow

21. Comparative Analysis

• Operating Leasing vs. Purchase with Equity

• Operating Leasing vs. Bank Loans

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