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CLFP EXAM - History & Purpose of Leasing WITH 100- SURE ANSWERS
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CLFP EXAM - History & Purpose of Leasing WITH 100- SURE ANSWERS
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10/5/24, 8:02 AMEUNICE
CLFP EXAM - History & Purpose of Leasing WITH 100%
SURE ANSWERS
Terms in this set (29)
American companies acquire $1 billion in equipment each year of which 55% is
Currently how big is the leasing industry?
leased.
What % of companies lease? 8 of 10
4000 years ago the Sumerians produced leases on clay tablets for ag tools, water
How old is leasing? rights and animals. The Code of Hammurabi is an ancient record of Babylonian
dating back to 1700 bc
In 1284 ad, the Statue of Whales was writtento deal directly with leasing of personal
What is the Statue of Whales? property. It was further clarified in 1571 by a statute that defined who owned leased
equipment.
How did leasing get started in the United The onset of the Industrial Revolution ( in the 1700's) provides opportunity for leasing
States? particularly in railroads.
The most well-known railroad finance plan considered to be the precursor of today's
What is the Philadelphia Plan? conditional sales contract, equipment finance ageement and money over money
leases
In early 1900, independents formed because they realized that many railroad
How dis independent leasing companies companies did not want long term ownership of assets. They offered more short
start? term leases with ownership going to the lessor at the end. This was the beginning of
the operating lease.
After WWII, mfg sought to expand. They turned to independent leasing companies
How did vendor leasing companies start? which were not related to the vendor or end user. This led to vendoe leasing
programs
Manufacturers saw benefit in financing their products. They also felt leasing may be a
Why did Captive Leasing companies start? god way to retain control of the products at lease end.. examples include Bell
Telephone, Hughes Tool Company and United Shoe Machinery Company
During the 1900's the economy expanded and there was a surge in installment credit.
When did the Captive Leasing market
Mfg wanted to sell more and they felt they could through affordable payment
expand?
programs. Ford (cars) and GE were examples
What caused the shift to what we consider Two trends in the early 1950's, 1) the governments efforts to stimulate the economy 2)
the modern era of leasing? the advancement of technology
In 1954, US Leasing Corporation became the first general equipment leasing
Which was the first general equipment
company to take advantage of tax benefits (section 167 - accelerated depreciation)
company?
of ownership while passing along the right to use equipment to another party
1/2
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