Duration: 1 day

Instructor: Fatih KURAN

Objective

This program is designed to equip employees of short-term vehicle rental companies with fundamental concepts of financial mathematics relevant to their work areas. Participants will learn to analyze cost components, seasonality, and occupancy rates to determine the daily rental price of vehicles.

Who Should Attend

• Employees of Rent-a-Car companies.

Purpose

• Gain proficiency in the fundamental concepts of financial mathematics.

• Understand cost components in Rent-a-Car operations.

• Learn to determine daily vehicle rental prices.

Content

1. Time Value of Money

• Calculating Future Value

• Calculating Net Future Value of Cash Flows

• Calculating Present Value

• Calculating Net Present Value (NPV) of Cash Flows

2. Fixed Lease Payment Calculations

3. Interest Rates

• Nominal Interest Rate

• Compound Interest Rate

4. Amortization Tables

5. Introduction to Operating Leasing Pricing

6. Pricing for Rent-a-Car Transactions

• Cost Components and Analysis

• Occupancy Assumptions

• Seasonality Effects

• Residual Value

• Daily Rental Price Calculations

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

9. Leasing Sales and Differentiation Techniques (Excel-based)

Duration: 2 days

Instructor: Fatih KURAN

Objective

This program aims to help professionals involved in the sales and marketing of leasing financial techniques understand and analyze the parties and dynamics of leasing transactions. Participants will learn how to create innovative solutions and add value in the competitive environment within the lessee-lessor-vendor triangle.

Purpose

• Examine the structures, demands, and needs of the three pillars of leasing: Lessee, lessor, and vendor.

• Explain the advantages of leasing and why it is preferred as an investment financing technique.

• Ensure accurate understanding of sales targets and develop appropriate action plans.

• Analyze relationships and dynamics between Lessee, lessor, and vendor firms.

• Understand the differences between investment types and machinery/equipment risks.

• Study the asset groups subject to leasing and differences in machinery/equipment.

• Examine the competitive landscape and compare alternative investment financing options.

• Emphasize the importance of lease plan structuring and its connection to credit risk.

• Highlight the importance and advantages of differentiation.

• Explain methods of product development through creative financial alternatives in leasing.

Content

1. Introduction

• How Leasing Works and Its Parties

• Development Phases of Leasing

• Leasing Worldwide

• Current Situation in Turkey

2. Knowing Ourselves

• Goals

• Financial Structure

• SWOT Analysis

Group Work: Differentiation in Competition

3. Knowing the Lessee

• General Evaluation

• Cash Flow

• Sectoral Perspective

• Investment Types and Credit Risk:

o Capacity Expansion

o Bottleneck Elimination

o Technological Renewal

o New Investment

o Other

• Understanding Machinery and Equipment

• Why Leasing?

Group Work: Investment Risk Analysis

4. Knowing the Vendor

• Sector

• Manufacturer/Representative/Reseller

• Machinery/Equipment

• Second-Hand Value

• Transaction Volume

• Competitors

• Vendor Credit

• Other

5. Structuring Alternatives

• Lessee Needs Analysis

• Grace Period Lease Structures

• Increasing or Decreasing Payment Lease Structures

• Seasonal Variable Lease Structures

• Interim Payment Lease Structures

• Lease Skipping

• Balloon Payment Lease Structures

• When to Use Which Structure

• Lessor Credit Risk Management

• Why Structuring?

o Profitability

o Creating Added Value

6. Lease Payment Calculations with Vendor Credit

• Discount Method

• Net Value Offset Approach

• Prepayment with Interest Approach

• Calculating Partial Vendor Payments

7. Financial Leasing and Fixed Asset VAT Offset Transactions

• What is Fixed Asset VAT Offset?

• Risks in Offset Transactions

• Offset with Lease VAT

• VAT Pool Offset Approach

• Interest on Offset (Local Currency or FX)

8. Competition

• Competing Investment Financing Sources:

o ECA Loans

o Vendor Credits

o Forfaiting

o Project Finance

• Comparisons:

o Concept of Cost of Capital

o How Should Companies Decide?

o Leasing vs. Bank Loans

o Leasing vs. Cash

o Leasing vs. Leasing

o Why is Leasing Financially More Viable? (In case it is?)

Case Study: Comparison of Investment Alternatives (Financially)

Group Work: Leasing vs. Bank Loans

Group Work: Leasing vs. Leasing

9. Differentiation

• What Does the Customer Want?

• Differentiation in Service

• Differentiation in Cash Flow

• Differentiation in Costs

• Specialization and Creating Added Value

10. Product Development

• Fixing Investment Costs

• Vendor Credit Applications

• Transactions with Investment Incentive Certificates

• Currency and Parity Fixing

• Currency Baskets

• Interest-Free Leasing

• VAT in Automobile Leasing

• Balloon Payments and Extension Options

• Lease Term Extension Options

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