Indirect - Why Leasing Makes Sense

Why Leasing Makes Sense For the Indirect Lender:

Leasing Lets the Lender Differentiate Itself from the Competition

• Don't compete on rate
• Don't chase the deals (buying deeper)
• Don't look like every other lender in the market
• Offer your dealers a unique and profitable alternative

Leasing Lets Your Dealers get:

Enhanced Cash Flow

• Elimination of Upfront Sales Tax (in most states) - The dealer does not have to send the state a big check each month

More Profit

• Higher Gross Profit at the Same Payment (up to $1000 more)
• Acquisition Fee (standard with a lease)
• Termination Fee (standard with a lease)

Collateral Control

• Customer has to return the car to the dealer at lease end

Regulatory Relief

• Reduced Federal Requirements (Reg. M vs. Reg. Z)
• Reduced State Requirements
• Reduced Consumer Disclosures (no interest rate disclosures)

Customer Options

• Shorten the Term up to six months at the same payment as a loan
• Reduce the payment up to $40 per month at the same profit as a loan

We know Leasing makes sense ...but does being the "Lessor" make sense for you? Click here to find out.

BACK TO TOP