Rail Finance/Leasing Sector, a Promising Year Ahead

In a news release, Progressive Railroading commented on a survey of 60 industry executives with regard to the key issues facing the rail finance and leasing sector in 2012.

The following comments were excerpted from the news release:

“From the lessor’s perspective, purchase prices for new cars cannot be supported by prevailing lease rates unless dangerously high residual assumptions and/or unrealistic remarketing potential is factored into the economic equation. The rapidly changing regulatory and car design environment challenge the traditional belief that cars will be marketable for 50 years.”

“The impact from new accounting rules on leased-in equipment is one of the biggest issues that leasing companies are facing. Another is the high cost of new rail equipment and the difficulty in getting lease rates that justify the higher investment costs.”

“Tighter credit process and more scrutiny of transactions. Some traditional lenders have stopped funding new transactions.”

To read the full Progressive Railroading news release: click here.