Lease Returns
The ongoing inventory shortage is impacting Lease Returns, with dealers experiencing a large percentage of their customers buying their vehicles at the end of the Lease.
Turning lease buyouts into sales of new cars is more important than ever today.
According to J.D. Power’s 2021 U.S. End of Lease Satisfaction Study, returning leasees start considering a new vehicle purchase 12 months before their current lease is up. Below are some tips on converting a customer planning on buying out their lease into the sale of a new vehicle.
TIP:
1. Develop a plan to contact customers early and often, starting 12 months before the termination of their lease.
2. Illustrate how the tax they will pay when they buyout their lease will impact the equity they have in the vehicle.
2. Review all of the benefits of owning a new vehicle:
- Warranty
- Fuel Savings
- EV and Hybrid Alternatives
- Improved Safety and Reliability
- New Brakes, Tires, and other Components.
4. Show the customer that a New Vehicle costs less than buying their existing Leased Vehicle.
One of the benefits of a Lease is the opportunity to reconnect with the Customer at Lease-End when they must make a buying decision.
