---
title: Affordability Is Driving Lease Programs  | LHPH Capital
description: Affordability is a major benefit of leasing programs in light of the current market. This infographic shows how affordability is not only beneficial to the dealership but also to the customer.
image: https://www.lhph.com/hubfs/LHPH_January2022/images/1.png
---

# CAPITAL FOR THE LHPH INDUSTRY

CREATING FINANCIAL FLEXIBILITY ONE DEALER AT A TIME

# AFFORDABILITY IS DRIVING LEASE PROGRAMS

***Eyo Toe | May 10, 2021***

![1-3](https://www.lhph.com/hubfs/1-3.svg)

How can you keep your customer payment affordable as used car prices continue to increase? At first thought, the solution might be to extend the term. The infographic above shows what an extended term looks like in a Lease Contract versus a Retail Installment Sales Contract (RISC). Using the same IRIL or APR equivalent and vehicle retail value, the customer payment fluctuates depending on the length of the term.

A car of $14,000 value could be used for a 36 or 42 month term by adjusting the residual value to either 40% or 45% while maintain an affordable monthly payment for the customer. In order to get a payment similar to the 42 month lease ($404) the RISC would need a term of 54 months to get a similar payment ($403).

A Lease Contract is not only beneficial for your customer by providing a more affordable payment, but also for your dealership portfolio as shorter terms are associated with decreased delinquency, reduced charge-offs, and better overall performance.

[SUBSCRIBE TO OUR MONTHLY NEWSLETTER](https://lhph-5346625.hs-sites.com/newsletter-sign-up)

### Recent Posts

- [LHPH Capital Named to Special Finance 175 for Fifth Consecutive Year](https://www.lhph.com/blog/lhph-capital-named-to-special-finance-175-for-fifth-consecutive-year)
- [2025 LHPH Summit Highlights](https://www.lhph.com/blog/2025-lhph-summit-highlights)
- [LHPH Capital Named to 2025 Auto Remarketing AR500](https://www.lhph.com/blog/lhph-capital-named-to-2025-auto-remarketing-ar500)
- [Understanding Bonus Depreciation: a look into the “One Big Beautiful Bill”](https://www.lhph.com/blog/understanding-bonus-depreciation-a-look-into-the-one-big-beautiful-bill)
- [Subprime Auto Finance News Special Finance 175](https://www.lhph.com/blog/subprime-auto-finance-news-special-finance-175)

### We believe in challenging the status quo of subprime lending and value our dealers as partners.

[![Contact Us Today!](https://no-cache.hubspot.com/cta/default/5346625/6152894f-ca9f-4355-9c7a-399fae9340f0.png)](https://cta-redirect.hubspot.com/cta/redirect/5346625/6152894f-ca9f-4355-9c7a-399fae9340f0)

### Get access to our FREE! e-book and learn how to launch a Lease Here Pay Here program at your dealership.

[ Get my FREE E-Book ](https://lhph-5346625.hs-sites.com/ebook-page)