Pushing Quality Over Price in the Leasing MarketSat, 12/21/2019 - 05:00
Q: What are the most important achieved milestones for Active Leasing?
A: One of the most important achievements has been helping our clients understand what an operating lease is. The concept is best illustrated in real estate, where a property is rented and monthly payment is made. When the contractual obligation ends, the property must be returned.
In the automotive sector, operating leases are not as popular as financial leases and not all businesses understand the tax benefits that this structure entails. When a client does not own the asset, such as a car, there is a tax-deductible percentage for the car rental and other benefits that can contribute to the financial health of a company. Having succeeded in introducing the idea of operating leases, which includes machinery and equipment, is among our finest accomplishments.
Our success can be seen in our customer retention rate, which has exceeded 96 percent in the 11 years we have been operating. Our customers know that they can find more attractive price options in the traditional financing world, but we are the only company that offers the opportunity to acquire an asset with discounts and car adjustments that are tailor-made to their needs. That is what makes us the ideal partner for each one of our clients.
Q: How is your portfolio divided?
A: Active Leasing’s portfolio is divided into transport equipment, machinery and production equipment. Any equipment that has wheels and a demonstrated secondary-market value counts as transportation equipment. This represents 45 percent of our portfolio. Machinery and production equipment make up the remainder of our portfolio. When Active Leasing started operations, car rentals made up 100 percent of our portfolio. Over time, our clients and the market helped us diversify.
Q: What strategies have Active Leasing taken to increase its client base?
A: We have two approaches. First, we create a model that analyzes the lease's tax advantages and, second, we provide our customers with continuous follow-up visits. Moreover, we have five methods to work our portfolio of leases and clients. The first is based on our present portfolio, which generates substantial growth for the company. The second is our base of shareholders and associates who help us to strengthen our network of customers through recommendations. Third, is our sales force, led by two business directors and a four-person team. Brokers and financial advisors are next, and finally, our website.
Q: What are Active Leasing’s main differentiating factors?
A: One of our main differentiators is that we do not seek to be either the cheapest choice or the costliest. We want to be a business that provides its clients with the finest service. It is gratifying that our clients are happy with the rapid, prompt and professional service we provide. Active proof of our success is our retention rate and the success stories we have been a part of. We have clients that were small when they began working with us, selling MX$15 million (US$790,000) a year. With our financial products, they are now selling MX$200 million (US$10.6 million). Active Leasing has been able to expand and deliver tailor-made services, from a company’s executive car fleet to the equipment it needs to produce goods. We have distinguished ourselves by understanding the needs of our customers and providing them with alternatives that help them grow.
Q: Who are Active Leasing main collaborators and how do these alliances make a difference for your clients?
A: We have an agreement with Chevrolet that enables us to offer preferential prices and more benefits to our clients. We also hold service agreements with dealerships like Grupo Alden, Grupo Cever and Grupo Andrade. In addition, we have vendor programs with equipment dealerships and manufacturers that allow us to target customers who are leaders in their industry.
Active Leasing believes service is the most significant component of the leasing business. We guarantee that we offer high-standard services and we can ensure that the client receives quality customer care.