A number of years ago, in a different life, I was involved in a couple of the Bank Act reviews fighting for the Banks to get into the leasing market here in Canada. We eventually did our own thing, launching a lease product that met all the criteria for “not” being a Bank lease, but that was our product non-the-less.
Better competition, better for the consumer were the primary arguments for entering leasing directly by the Banks, along with the fact that almost all consumer leasing in Canada was controlled by foreign corporations.
Now in 2011 the act comes up for review again, and it looks like this may finally change. Two of the major opposition (Chrysler Credit and GMAC) are no longer around offering leasing, and as can be seen in the article link, Mazda and Nissan are also for it.
I think it is a bout time. Too bad the president of the Canadian Dealer Association can’t see where it will help his members. He is trying to say that Bankers are not experienced or smart enough to do what other finance companies have done all over the world. It’s not Rocket science buddy. In fact, if Bankers had been in charge of Chrysler Credit and GMAC, maybe they would still be major players, and not either out of business, or scrambling to straighten out their operation.
I guess the association president thinks he knows it all. By his reasoning, not ever being in the financial sector himself, he is not qualified to comment !