Take the High Road

Richmond-based company helps navigate congestion around vehicle leasing

WORDS JOE LEARY  X  PHOTOGRAPHY PEBBLE STUDIOS

While Canada may indeed be considered the land of opportunity for all, that statement does come with the occasional caveat. Inherent inequities face new immigrants, who routinely experience great difficulty in obtaining bank loans to enjoy some of life’s “finer things.” A prime example is the acquisition of high-end vehicles.

Enter Bryan Pang, CEO of Solution Financial.

Launched in Richmond, BC in 2004, Solution Financial is a unique and specialty enterprise that sources and provides its growing customer base with a wealth of luxury and exotic vehicles for lease.

In 2017, the company expanded its mandate, adding yachts and other luxury watercraft to the high-end lease market. 

Working exclusively with a select roster of automobile and marine dealerships, Solution Financial provides the ultimate solution to those who are unable to secure leasing terms with Canada’s traditional financial lenders and institutions.

Typically, these customers include new immigrants, business owners and international students. 

Solution Financial provides a unique leasing experience whereby it partners with its clients to help them navigate the challenges of acquiring, insuring, maintaining and upgrading vehicles and luxury assets in Canada.

Essentially, it purchases and ultimately leases millions of dollars in high-end vehicles.

Bryan previously worked for a used car dealership and relied heavily on independent leasing groups. He developed an understanding of the process as he worked in conjunction with the dealership’s leasing partners and often helped translate and facilitate the minutiae on behalf of Chinese customers. 

Automobile leasing, in and of itself, is nothing new; it served for years primarily as a tax deductible business expense item on corporate fleet leases. But the practice has since developed and become infinitely more accessible to everyday consumers. 

Over the years, Solution Financial has expanded its reach and today boasts a stable of some 300-plus automobiles, ranging in value from $100,000 to $500,000, and including everything from Mercedes to McLaren.

To those familiar with the lease concept, there are advantages to both buyers and sellers. A lease payment is generally lower than that of a car loan payment and the sales tax is due per month, per payment.

Contrast that to the up-front cost of securing a loan to purchase the vehicle outright. There is further comfort in the fact that lessees do not need to concern themselves with the depreciating value of a vehicle.

Unlike traditional car leasing—often centred on a client’s credit rating—Solution Financial developed a proprietary vehicle-leasing quoting system that analyzes the used-vehicle market values and then generates lease terms that emphasize equity value throughout the term of lease. 

This further establishes Solution Financial as a trusted co-owner, assisting the clientele to better manage their credit while keeping abreast of cash, tax and the vehicle valuation planning. As such, this reduces the client’s exposure to the depreciation value, which can often far outweigh the leasing cost itself. 

The exponential growth of this business has allowed the company to further expand operations.

“We completed our fifth consecutive profitable quarter and completed our expansion into Alberta,” says Pang.   

And while that expansion has resulted in increased profitability, the spread of the deadly coronavirus will also almost certainly play a role.

“We expect profitability to continue but unfortunately with the outbreak of COVID-19 we expect business to be much slower. We’ve implemented a work-from-home policy across our organization in accordance with government requirements.  

“We expect to be able to manage this crisis better than most as our leasing portfolio is mostly comprised of clientele who are leasing for flexible upgrades rather than financial need. We are actively supporting our dealer transactions and lease-end renewals and sales remotely.”

From a business perspective, Solution Financial doesn’t bear a large overhead as its principle office locations are self-owned and its compensation structure offers a large variable component.  

“We have a relatively small team and we’re well positioned to maintain operations for considerable time if need be,” Bryan says. 

“In the meantime we are continuing to focus on investor awareness and preparation for a growth financing to support further expansion opportunities when the markets return to normal.”

When that might be is, of course, anybody’s guess. However, having created the template and allowing its customer base to expand and flourish, Solution Financial has seemingly carved out its own niche within the high-end luxury transportation market.