Franchise Dealers Are Dipping Their Toes Into Lease-Here, Pay-Here
Eyo Toe | June 17, 2022
Subprime leasing is gaining traction from independents and now franchise dealers. Over the past few years, many consumers have been faced with adversity whether that is in the form of losing their employment or other financials hardships. Paul Sansone Jr. speaks from experience when he talks about many of his subprime customers as great people who were in a tough situation that ultimately affected their credit.
Dealer Controlled Leasing (DCL) is a turnkey program for subprime leasing, including training and support for credit education, collections, technology, and more. Dealers who are celebrating their profits should also be thinking long term about how their dealership will adapt to an uncertain market. Leasing provides a new revenue stream to the dealer resulting in more sales, customer retention, and tax benefits for the dealership.
Sansone gives insight into how he has structured his leasing program which incentivises customers to make all their payments on time for the first half of their term and rewards them by refinancing their deal at a lower rate or putting them in a nicer car. The innovative aspect to leasing is each program can be custom to the dealership and target market's needs. Whether you are working with $7,000 ACVs or $25,000 ACVs, leasing can offer your customer a realistic payment for a shorter term, all while helping them build their credit.
Still wondering if a leasing program is right for you? Our Why Lease page quickly breaks down the 10 benefits of leasing ranging from profitability to tax benefits.
Check out Jim Fitzpatrick's full interview with Paul Sansone Jr. on CBT News.