An independent lessor is a leasing company that is not an affiliate, joint venture or associate of a bank, manufacturer or dealer. They purchase equipment from various unrelated manufacturers or dealers and then leases the assets to the end-users.
Independent lessors are generally vendor-neutral and write three-party indirect leasing involving the lessor, the lessee and an unrelated equipment vendor (manufacturer or dealer). They rely on direct origination through their sales channels for most of their new business.
They are principally associated with the brokering, packaging, arranging and lease management service they provide to underwriting banks and captive finance companies. Independent lessors are rarely able to obtain funding as favorably as banks and captives.
| US Independent Lessors* 2010 | ||
|---|---|---|
| Rank** | Company | Net Assets (mn) |
| 23 | GATX | $4,469.9 |
| 26 | PHH Arval | $3,492.0 |
| 29 | Ryder U.S. Fleet Mgmt Solutions | $3,071.0 |
| 43 | ICON Capital | $1,167.0 |
| 44 | CSI Leasing | $1,097.0 |
| * Public or privately owned/operated independent of a parent or other entity with controlling interest. ** Of the 100 largest equipment finance/leasing companies in the US. | ||
| Source: Monitordaily | ||
A specialist lessor is an independent lessor that specializes in leasing certain assets, whereby in-depth knowledge of the assets enables the lessor to advise clients on the asset and to tailor the lease to their special needs. They are generally more able than other lessors to acquire and dispose of tailored assets, especially due to their specialist skills in valuing assets and the wider range of acquisition and disposal options they offer.
Specialist lessors commonly provide operating leasing of tailored equipment over a relatively long term and generally remarket off-lease assets and underwrite their residual risk. They commonly finance assets with another lessor through a head lease.