LEASING BASICS & BENEFITS
© 2012, Hyundai Motor America. All Rights Reserved.
© 2012, Hyundai Motor America. All Rights Reserved.
THE BENEFITS OF LEASING—TO YOU AND YOUR CUSTOMERS
© 2012, Hyundai Motor America. All Rights Reserved.
Leasing vs. Financing
In a traditional retail finance contract, the customer pays for the entire value of the vehicle
VALUE OF VEHICLE
© 2012, Hyundai Motor America. All Rights Reserved.
Leasing vs. Financing
In a lease, the customer pays for only the portion of the vehicle’s value that
the customer will actually use
DEPRECIATION RESIDUAL VALUE
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Six Reasons to Present Leasing to Every Customer Higher closing rate Removes selling price as an objection Higher customer satisfaction Additional gross profit opportunity Additional F&I income Shorter ownership cycle
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Six Benefits of a Lease Customer
Customers in the market for a vehicle more often
Higher customer satisfaction and retention
Steady supply of good pre-owned vehicles• Certified Pre-Owned vehicles have higher transaction prices
than non-certified used cars• Certified Pre-Owned vehicles support residual values• Hyundai CPO program awarded “2012 Best Popular Certified Pre-
Owned Program” by IntelliChoice
Less turnover among sales force
Increased fixed operations business
Additional profit opportunity
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Twelve Benefits to Customers of Leasing Lower monthly payment
More vehicle for the money
Shorter amount of time to a paid-up contract
Less maintenance
Excess miles can be less expensive to pay for in a lease than to absorb in trade-in value
No risk of diminished value
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Twelve Benefits to Customers of Leasing GAP coverage included Frees up credit No hassle selling or trading vehicle Liquidity No risk of vehicle resale value for cash
buyers Vehicle is usually under warranty for duration
of contract
© 2012, Hyundai Motor America. All Rights Reserved.
Liquidity
LEASING vs. FINANCINGVehicle Cost = $25,000
Cash FlowLease Finance Difference
Down Payment 0.00 ‐ 2,500.00 = (2,500.00)1st Monthly Payment 487.61 ‐ 0.00 = 487.61 Refundable Security Deposit 500.00 ‐ 0.00 = 500.00 Total Upfront Cash Outlay 987.61 ‐ 2,500.00 = (1,512.39)
Monthly Payment $ 487.61 ‐ $ 723.37 = (235.76)Number of Payments 36 36 Total Amount of Payments 17,553.96 ‐ 28,541.32 = (10,987.36)
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Summary
Benefits to you and the dealership of leasing• Higher closing rate• Removes selling price as an objection• Higher customer satisfaction• Additional gross profit opportunity• Additional F&I income• Shorter ownership cycle
© 2012, Hyundai Motor America. All Rights Reserved.© 2012, Hyundai Motor America. All Rights Reserved.
Summary Benefits to the customer of leasing
• Lower monthly payment
• More vehicle for the money
• Shorter amount of time to a paid-up contract
• Less maintenance
• Excess miles can be less expensive
• No risk of diminished value
• GAP coverage included
• Frees up credit
• No hassle selling or trading vehicle
• Liquidity
• No risk of vehicle resale value for cash buyers
• Vehicle is usually under warranty for duration of contract
© 2012, Hyundai Motor America. All Rights Reserved.
THE BENEFITS OF LEASING—TO YOU AND YOUR CUSTOMERS
© 2012, Hyundai Motor America. All Rights Reserved.
LEASING BASICS & BENEFITS
© 2012, Hyundai Motor America. All Rights Reserved.
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