LEASING BASICS & BENEFITSd16ilv7dv4hl47.cloudfront.net/Other/Selling_Skills/...Benefits to the customer of leasing • Lower monthly payment • More vehicle for the money • Shorter

LEASING BASICS & BENEFITS

© 2012, Hyundai Motor America. All Rights Reserved.


THE BENEFITS OF LEASING—TO YOU AND YOUR CUSTOMERS


Leasing vs. Financing

In a traditional retail finance contract, the customer pays for the entire value of the vehicle

VALUE OF VEHICLE


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


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


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


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


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)


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


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


THE BENEFITS OF LEASING—TO YOU AND YOUR CUSTOMERS


LEASING BASICS & BENEFITS


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LEASING BASICS & BENEFITSd16ilv7dv4hl47.cloudfront.net/Other/Selling_Skills/...Benefits to the customer of leasing • Lower monthly payment • More vehicle for the money • Shorter