Solution Financial Inc.

Innovating Luxury Vehicle Leasing

This profile is part of a paid investor education campaign.*

Overview

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’s proprietary lease quoting system streamlines the process for dealers to provide alternative leasing options to clients and ultimately close more sales.  Solutions novel quoting system evaluates the merits of lease transactions in real time based on current auto market values in addition to traditional lending criteria.  In addition, Solution 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.  Solutions goal is focused on expanding this smarter approach to luxury car ownership across Canada.

Flexible approach to leasing

Solution’s success to date has come from servicing wealthy new immigrants and international students. This group is not well-served by traditional lenders as they do not have 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 for this market led to Solution developing a much 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 opportunities 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’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 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’s strategic partnerships, the LeaseClub program focuses on the lifestyle component of driving a luxury vehicle.

Under their existing business model, Solution has seen an 18 percent annual growth rate of their lease brokerage and sales business, reaching $40 million in 2016, with an increasing EBITDA of over $1 million.

Moving forward

Following the reverse takeover (RTO) of Shelby Ventures, Solution’s plans for the future include expanding their leasing approach to other key markets in Canada and growing their lucrative in-house leasing program.

Solution will continue to leverage its niche market, targeting luxury dealerships near universities and colleges with a large international student population. The company will also look to attract other luxury car owners that also seek the type of flexibility that Solution has to offer.

Incorporating a more innovative and technological approach to their business model, Solution will also be expanding the capability of their CRM system so as to more efficiently and effectively link customers to dealerships and provide dealerships with more leasing options.

Company Highlights

  • Innovative leader in luxury car leasing solutions
  • Proprietary and profitable lease quoting system tied to vehicle market valuations and traditional lending parameters
  • Unique approach to lease structures and terms more suitable for flexible luxury purchasers ie. approaching Car-As-A-Service flexibility.
  • Seeking entry into additional Canadian provinces and expanded customer segments to build on profitable business model.

Management

Bryan Pang—CEO

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.

Sean Hodgins—CFO

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, 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 8 years with a team of 65 employees. During his tenure at OpenRoad, he has achieved 5 consecutive years in the top 3 Dealerships in Western Canada. He holds a Bachelor of Arts.

 

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