How Offering Leasing Benefits Your Dealership and Customers – Ally
Your customers want that new car feeling, but if the corresponding price tag gives them pause, leasing may be the solution. This alternative to buying a vehicle isn’t just an attractive option for drivers — it can benefit your dealership as well.
Leasing advantages for customers
While inventory has increased since supply chain issues constricted availability throughout the pandemic, sticker shock is still a possibility. Vehicle prices are up $1,393 from a year ago. The average new car buyer in the U.S. paid $48,528 in May 2023. High car prices coupled with rising interest rates mean many would-be buyers feel a new car is unaffordable.
Leasing a new vehicle instead typically offers lower monthly payments and gives drivers the flexibility to trade up to a new car more often.
Business benefits
Leasing offers customers flexibility and affordability, and it also creates the opportunity for future revenue for your dealership. By providing leasing options, you also shorten the trade-in cycle, which can help drive loyalty and customer satisfaction.
Leases are also a smart way to cater to customers that want to keep up with the latest technology like electric vehicles. When customers lease a car, they know they’ll only have it for a limited time and can upgrade for a newer model when their lease ends.
Leasing shortens the trade-in cycle, which can help drive loyalty and customer satisfaction.
Tips for leasing success
If you’re ready to reap the rewards of leasing for your customers and dealership, follow these tips to make the process as smooth as possible.
Train your staff
Make sure your team is ready to answer customers’ questions. Set up your dealer management system and ensure your staff is properly trained on how to present leasing options and troubleshoot any issues. Finance providers can offer specialized lease training, including strategies to help manage the customer’s trade cycle.
Integrate leasing into your sales process
Quote a lease to every eligible customer. Some drivers may have never considered leasing a car before and could be unaware of the potential benefits. Make sure customers know it’s an option so they can more easily weigh the potential upsides versus purchasing.
Keep your dealership site updated
Many customers start their car search online, so make sure your website has accurate and up-to-date information about your inventory and lease options. Offer digital tools like payment calculators to help customers see how a lease may work for them. Your site is also a great way to glean valuable customer data and nurture new leads.
Follow up
Keep tabs on your current lease portfolio and connect with customers six to nine months before their lease is set to expire. Offer early inspections and be prepared to discuss options for their next vehicle. Let them know what they may owe in remaining payments and fees if they terminate early, as well as if their vehicle has enough value to end their contract early without incurring an early termination charge. Leasing is a great path to repeat customers, so make the experience as convenient and easy as possible to earn their loyalty.
Treat customers as individuals
Another critical key to leasing success is to remember that no two customers are the same. Work to truly understand the unique needs of each customer and tailor the lease terms and mileage for their circumstances. To satisfy a range of situations, Ally provides flexible options with Ally SmartLease ranging from ultralow mileage leases on select makes/models to high mileage leases with 12-month to 60 month terms.
Drive customer satisfaction and loyalty with leasing
Purchasing a vehicle is not the only way to drive off the lot with a new car. Offering leasing is a win-win solution for customers and dealerships. Make the most of this option to boost your business.
