Innovating Luxury Vehicle Leasing
This profile is part of a paid investor education campaign.*
Solution Financial Inc. (TSXV:SFI) is a luxury and exotic car leasing provider dedicated to enabling luxury car dealerships and their clientele with a ‘white-glove’ experience. Built on 14 years of profitable lease brokerage experience, Solution Financial’s proprietary lease quoting system streamlines the process for dealers to provide alternative leasing options to clients and ultimately close more sales. Solution Financial’s novel quoting system evaluates the merits of lease transactions in real-time based on current auto market values as well as traditional lending criteria. In addition, Solution Financial manages an online community portal, LeaseClub, for its extensive network of luxury car enthusiasts which helps drive demand for its dealers and its own lucrative end of lease offerings. Solution Financial is focused on expanding its smarter approach to luxury car ownership across Canada.
Flexible approach to leasing
To date, Solution Financial’s success has come from servicing wealthy new immigrants and international students. This group is not well-served by traditional lenders as they do not have an established local credit history. Additionally, if they were to purchase a luxury automobile outright, the associated tax and resale markets can be unusually punitive if the owner wishes to upgrade regularly. The need to find more flexible leasing alternatives led to Solution Financial developing a smarter approach to auto leasing. Solution’s proprietary lease quoting system assesses vehicle value under different parameters and provides considerably more flexibility in lease negotiations than with traditional bank lending approaches.
In addition, Solution offers a uniquely flexible and, tailormade approach to leasing where customers have the opportunity to upgrade or downgrade within manageable criteria. For many car enthusiasts, this is a very attractive alternative to purchasing a vehicle outright resulting in many repeat customers.
With Solution Financial’s approach, the company has grown to service over 15 dealerships in the Lower Mainland and has brokered over $50 million in lease transactions over the last two years. It also conducts in-house leasing and sells end-of-lease and wholesale automobiles.
Solution Financial has also developed an online and social community called LeaseClub, which employs a unique partnership approach with luxury and exotic car enthusiasts. Offering educational information, exclusive pricing on repairs and parts and access to Solution Financial’s strategic partnerships, the LeaseClub program focuses on the lifestyle component of driving a luxury vehicle.
Under the company’s existing business model, Solution Financial has seen a 14.10 percent annual growth rate of its lease brokerage and sales business. The company expects to grow its in-house portfolio to over $40 million by 2020 without brokering out its leases to third-party lending companies.
Solution Financial’s plans for the future include expanding its leasing approach to other key markets in Canada and growing the company’s lucrative in-house leasing program.
Solution Financial intends to continue to leverage its niche market, targeting luxury dealerships near universities and colleges with a large international student population. The company also plans to attract other luxury car owners that seek the type of flexibility that Solution Financial has to offer.
Incorporating a more innovative and technological approach to the company’s business model, Solution Financial intends to expand the capability of its CRM system so it can more efficiently and effectively link customers to dealerships, providing dealerships with more leasing options.
- An innovative leader in luxury car leasing solutions.
- Proprietary and profitable lease quoting system tied to vehicle market valuations and traditional lending parameters.
- A unique approach to lease structures and terms more suitable for flexible luxury purchasers (i.e. approaching car-as-a-service flexibility).
- Seeking entry into additional Canadian provinces and expanded customer segments to build on the company’s profitable business model.
- Recently secured a $7.5 million credit loan facility from a Schedule 1 Canadian Financial Institution.
With over 15 years in the automotive industry, Bryan Pang has helped reinvent the luxury and exotic vehicle leasing business in Western Canada. As a pioneer and innovator, he has built a team dedicated to the highest standards of customer service.
With over 20 years of public and private accounting experience, Sean Hodgins specializes in working with high growth businesses. He previously worked with Deloitte-Vancouver and PricewaterhouseCoopers-San Jose, California. He is a CPA-CA and CPA-Illinois.
Vincent Lau—VP Operations
Vincent Lau has over 25 years of experience in automotive business management. He was the General Manager at OpenRoad Audi for eight years with a team of 65 employees. During his tenure at OpenRoad, he has achieved five consecutive years in the top 3 dealerships in Western Canada. He holds a Bachelor of Arts.
Desmond Balakrishnan – Director
Desmond Balakrishnan is a Vancouver lawyer and has practiced law as a partner at McMillan LLP since February 2002. His areas of practice focus on mergers and acquisitions, listed company maintenance, international public listings, gaming and entertainment law. He has been a director or officer of 13 public companies or reporting issuers over the last five years.
Steve Saville – Director
Steve Saville is a Vancouver lawyer practicing corporate and securities law at the Vancouver office of Fasken Martineau DuMoulin LLP, one of the leading law firms in Canada. He has been a partner at Fasken since 2012. His areas of practice focus on securities and M&A for both public and private companies.
Kerry Meier – Director
Starting as a general insurance broker over 25 years ago, Kerry Meier developed a deep understanding of the insurance business while expanding on his natural business acumen. As the sole founder of Meier Insurance, he took a scratch operation from virtually nothing to close to $5 million in annual gross commissions and employing close to 50 full-time staff members. He recently sold his interest in his insurance business and has proudly joined the director team at Solution Financial.
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