Operational leasing and application

Operational leasing concept is an important phenomenon for the leasing sector which grows constantly. Intensifying competitive conditions in globalising and changing market structure, shorter technological lifetime and need for new product release and product diversity urge companies to finance their investments by means of operational leasing.Research proposition of this study can be expressed as ?to verify that operational leasing is an alternative financing method for investors vis-a-vis purchase and financial leasing under current economical environment?. What kind of financing method is convenient according to investors? needs is considered. In this context, purposes of the study can be expressed as follows.a) In periods during which growth slows down and international liquidity suffers squeeze, is it likely that operational leasing would be preferred as an investment financing method according to company?s objectives?b) When operational leasing is preferred as an investment financing method, what kind of contributions it would make to national economy as well as to lessee and supplier?Foreign sources were referenced to during literature scanning while looking for answers to research questions in relation to operational leasing. ?Case study? method was preferred for data acquisition and this, in turn, shed light on sectoral structure, processes and offered opportunities of the company doing professional automobile leasing in our country where operational leasing practice is limited. Research tried to explain the sector through reconstruction resting on comprehensive information obtained focusing on automotive sector. Leasing Law prescribes that leasing period must be four years at a minimum and two years only in specific conditions and does not allow for short-term leasing. In Turkey, operational leasing is implemented by leasing companies within the framework of long-term leasing agreements. As information of the company taken as case study are confidential, its trade name was not mentioned and some changes were compulsorily made on their quantitative values.As the result of study conducted in this framework, as operational leasing does not cover whole lifetime of the goods, that is, machinery and equipment, the lessee may terminate the agreement for the purpose of returning such goods. From this perspective, operational leasing provides investor with repairs, maintenance-repairs, product diversity, customer satisfaction, efficient use of resources, as well as ability to keep up with technology. With reduced liquidity opportunities in international markets and with high real interest rates going on, operational leasing is used significantly in our country in reducing capital cost. On looking from this perspective, it is likely that operational leasing would make a contribution in respect of considering this as an alternative method for investments.