LHPH Deal Structure
By: Trevor Watson April 29, 2019
New dealers to LHPH, and those who are transitioning from BHPH to LHPH, tend to initially omit some key opportunities inherent in a well-structured lease. These fees represent some of the many advantages of the LHPH model when compared to a traditional BHPH deal. Below are ranges for the recommended fees you should be including when structuring your leases:
- Acquisition Fee $495-$895
- Purchase Option Fee $350-$450
- Disposition Fee $350-$450
- Security Deposit $500 or greater, maintain consistency
- Mileage Fees $0.10-$0.15 per mile
- Wear & Tear Determined by the condition at time of return
Don’t leave money on the table when you are desking your leases, build these into your standard lease agreement to ensure consistency across all your deals and improve profitability.
Every dealer is different, give us a call and let’s discuss the right levels for your dealership based on your business model.