LHPH: Affordability and Performance
Kevin Londerholm | October 27, 2020
Used car leasing offers an answer to the challenge of affordability and performance. Thanks to the incorporation of the residual value in the lease, a LHPH dealer can offer the same monthly payment on the lease of a vehicle with a $11,000 agreed upon value as a BHPH dealer can offer on a vehicle with an $8,000 sales price. Both deals provide the consumer the same monthly payment and down payment, with the same 36-month term. However, the LHPH dealer can offer a newer vehicle, with lower miles, likely to last the entire term, and result in better portfolio performance over time.
See below as Joe Segrave, Owner of Benchmark Auto Sales, describes how important affordability is for the customers he serves.