For years, leasing was one of the most effective ways to keep customers in a three-year buying cycle while lowering monthly payments and creating a steady stream of off-lease inventory.
That equation seems to be changing.
Higher interest rates, fewer manufacturer lease incentives and rising vehicle prices have narrowed the payment gap between financing and leasing in many markets. At the same time, fewer lease returns today could mean fewer late-model used vehicles available tomorrow.
Is leasing still one of the best tools dealerships have to build long-term customer loyalty, or are today's customers better served by financing?
What are you seeing in your showroom? Are customers asking for leases, or are they walking away when they see the payment? Have your OEM's lease programs remained competitive, or has financing become the easier conversation?
For stores that still lease successfully, what strategies are working?
Leasing is the key to…
Leasing is the key to retention. In my store, lease retention is 30 points higher than retail. the 72, 84 month contracts are not good for long term business.
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