Crisis activates commercial vehicle financing lease

In recent years, financial leasing has become a common practice in sectors like construction machinery and office equipment, but it remains relatively uncommon in the automotive industry. However, during times of economic downturn, the concept of "I provide the vehicle, you just pay rent" is gaining traction among commercial vehicle manufacturers and operators. According to current trends, bus companies and heavy truck users have already started adopting leasing as a way to acquire vehicles, with some even offering financial leasing services to their clients. **Bus Companies Learn from Each Other** Recently, Yang Tianming, General Manager of Xi’an Public Transport Corporation, told reporters from "Commercial Automotive News": “The company faced operational challenges and had to try various measures. Eventually, we chose financial leasing.” He added that 80 million yuan was already secured, and more than 600 new buses were leased. The total funding reached 130 million yuan, with all the vehicles now in place. Since September 2007, Xi’an introduced a 50% discount for adult IC cards and a 30% discount for students, making its credit system second only to Beijing. However, rising fuel prices since 2008 increased operating costs, and the financial crisis further limited the company’s ability to accumulate funds for vehicle replacement. In May 2009, the Xi’an Municipal Bureau of Finance facilitated a partnership between banks and enterprises. This marked the first major financial leasing project between Bank of Communications and the Shaanxi Leasing Company. Under the agreement, the bank leased 130 million yuan to purchase new buses, which the transport company then leased back. At the end of the lease term, the vehicles would be transferred to the public transport company. Financial leasing has gradually emerged as a solution for public transport companies facing financing difficulties. For example, Hangzhou Public Transport initiated a leasing program to acquire thousands of vehicles, while Tianjin Public Transport raised over 300 million yuan in 2006 to lease 2,000 buses. Li Daoxin, Deputy General Manager of Tianjin Public Transport (Holdings) Co., Ltd., noted that this method is still widely used today. He emphasized that financial leasing has helped accelerate bus upgrades, improve vehicle quality, and expand transportation services. **Crisis Sparks Growth in Heavy Truck Leasing** Beyond the bus industry, the heavy truck sector has also seen an increase in leasing activity. Bao Zhongyi, from Zhejiang Tongyue Industrial Co., Ltd., mentioned that Shanghai Tongyue Leasing Co., Ltd. completed its full annual leasing performance for 2008 in the first half of the year. He attributed this growth to the impact of the financial crisis, which made bank loans more difficult to obtain and led many truck drivers to prefer renting instead of buying. Bao explained that under financial leasing, ownership initially belongs to the leasing company, and users only pay rent. However, they are required to make an initial payment of 30–40%. This approach helps improve liquidity and reduces the initial financial burden. Despite this, he pointed out that leasing is not without risk. Some tenants have failed to make payments or suffered accidents that damaged the vehicles. To mitigate these risks, the company conducts thorough credit checks and requires guarantees from users. **Bus Companies Enter the Leasing Market** As interest in this model grows, bus companies are also entering the financial leasing space. Recently, reports indicated that China University is exploring such financial services. Ji Lijun, Manager of Zhongda Motor Planning Department, confirmed that the company noticed a tight cash flow situation among some passenger and public transport companies due to the poor economic environment. This inspired them to offer financial leasing services. Ji highlighted two main advantages: support from banks and the fact that bus companies own the vehicles, eliminating the need for third-party leasing services, thus reducing costs. The financial leasing service is expected to launch soon, allowing users to rent vehicles and choose whether to purchase them at the end of the lease term. **What is Financial Leasing?** Financial leasing, also known as equipment leasing or modern leasing, involves transferring most of the risks and rewards associated with asset ownership. It allows the lessee to use the asset while the lessor retains ownership until certain conditions are met. The process typically involves the lessee selecting the asset and supplier, with the lessor purchasing the item and leasing it back. Rent is paid in installments, and at the end of the lease, ownership may transfer to the lessee, depending on the agreement. This type of leasing combines finance and trade, making it suitable for small and medium-sized enterprises (SMEs). It offers off-balance-sheet financing, meaning it doesn’t affect the company's liabilities or credit rating. This makes it an attractive option for businesses seeking flexible funding solutions.

Glitter Backpack

We've got custom glitter backpack available now!

It's mainly made of glitter fabric. The classic sparkle backpacks is durable and popular. It gives your team outstanding on the comp with custom embroidery logo or diamantes. It features padded shoulder straps and a plenty of space.

sparkle backpack; Custom glitter backpack; Cheer sparkle bookbag; Glitter cheer backpacks

Guangzhou Dandy Sporting Goods Ltd , https://www.dandysportswear.com