Duration: 2 days

Instructor: Fatih KURAN

Objective

Fleet leasing, a significant application of operating leasing, shares similarities with it but has unique characteristics. This program examines fleet leasing from multiple perspectives, explaining its place within the lessee-lessor-vendor triangle, its use cases, implementation methods, and product development and differentiation techniques. Participants will gain a comprehensive understanding of this critical financial technique.

Content

1. Overview of the Fleet Leasing Sector

• Daily Leasing

• Operating Leasing

• Financial Leasing

2. Development Process of Operating Leasing

3. Why Operating Leasing?

4. 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

5. Interest Rates

• Nominal Interest Rate

• Compound Interest Rate

6. 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

7. Internal Rate of Return (IRR)

8. Amortization Tables

• Amortization Table for Cash Flows

• Amortization Table for Increasing Payment Lease Plans

9. Fleet Leasing Applications

• Residual Value and Its Impact on Pricing

• Including Maintenance, Repairs, Tires, Fuel, Insurance, and Taxes in Pricing

• Including Replacement Vehicle Service in Pricing

• Lease Calculations Based on Mileage or Vehicle Usage

• Short-Term Fleet Leasing Applications and Pricing

10. Fleet Management Applications for Short and Medium-Term Leasing

11. Residual Value Calculations and Influencing Factors

• VAT and Other Tax Rates

• Effects of Inflation

• Effects of Devaluation

• Other Factors

12. Impact of Fixed Asset VAT on Pricing

13. Calculating Tax Advantages in Operating Leasing

14. Accounting and Tax Perspectives

15. End-of-Term Options

16. Skills Required to Offer the Product

17. Unique Benefits of Operating Leasing for Lessees

18. Lessee Profiles Suitable for the Product

19. Unique Benefits of Operating Leasing for Lessors

20. Unique Benefits of Operating Leasing for Automotive Companies

21. Specialization and Full-Service Transactions

22. Operating Leasing for Cost Reduction and Control

23. The Three Profit Centers of Operating Leasing

24. Pricing Full-Service Transactions

• IRR Impact of Volume Price Agreements

• IRR Impact of Maintenance and Repair Agreements

• IRR Impact of End-of-Term Agreements

• Advantages for Lessors

• Advantages for Lessees

25. Vendor Agreements and Guarantees

26. Leasing Documentation

27. New Products and Their Pricing

• Renewal Options Before Lease Term Ends

• Early Termination Options

• TRAC Leasing (Terminal Rental Adjustment Clause Leasing)

• First Amendment Leasing (Leases with Interim Purchase Options)

• Alternative End-of-Term Applications

28. Pitfalls in Operating Leasing Pricing

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