---
title: LEASE VS. LOAN 101
description: In this short video clip, our LHPH Chief Operating Officer, Tim Lawrence, explains the differences between a lease and a loan at the 2018 NABD Conference.  At the most basic level, this is why a LHPH dealer can offer smaller payments, with shorter terms than a BHPH dealer can on the same vehicle.
image: https://www.lhph.com/hubfs/LHPH_January2022/images/logo-navy-1.jpeg
---

# CAPITAL FOR THE LHPH INDUSTRY

CREATING FINANCIAL FLEXIBILITY ONE DEALER AT A TIME

# LEASE VS. LOAN 101

***Tim Lawrence | October 3, 2019***

In this short video clip, our CEO, Tim Lawrence, breaks down the key differences between a lease and a loan, as presented at the 2018 NABD Conference. If you’re wondering why Lease Here Pay Here (LHPH) dealers are able to offer smaller payments with shorter terms compared to Buy Here Pay Here (BHPH) dealers on the same vehicle, this is the video for you.

Tim clearly explains how the fundamental differences between a lease and a loan play a crucial role in shaping payment structures and terms. While a traditional BHPH loan requires the customer to pay off the entire value of the vehicle, leasing introduces the concept of residual value. This means that with LHPH, the customer is only financing a portion of the vehicle’s total cost, which results in lower monthly payments and shorter contract lengths.

By utilizing leasing as an option, LHPH dealers are able to offer a more flexible and affordable solution for their customers, making it an attractive alternative to BHPH financing. Tim’s insights in this clip shed light on why leasing can be such a powerful tool for dealers looking to meet customer needs while maintaining profitability.

Whether you're new to the concept or looking for a deeper understanding of how leasing differs from loans, Tim's explanation provides valuable clarity. Watch the video to see how LHPH can offer advantages that help both dealers and customers succeed in today's market.

To find out more about the advantages of a Lease-Here, Pay-Here program, contact us at (619) 222-9990 or read our FREE E-Book!

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