Lease Buyouts

Morgan Hardy

Do you handle lease buyouts in store or do you direct customers to take care of this on their own?

Jason Volny

@Morgan In my opinion, the more contact you have with a customer the better. We must stop making this a transactional business and return to building a relationship with our guests. With that said, your employees will be the friction point. If their pay plan only focuses on new gross, they will have a hard time justifying spending time with a lease buy out. It always goes back to accountability and compensation. 

Derrick Woolfson

As Jason mentioned (and I agree), dealers should manage the "lease buyouts." But in most cases, a lot of dealers just "turn them back in" without trying to sell them the vehicle, or lease them another one. I am cognizant that depending on the residual rate/money factor the lease "buyout" does not always make sense for the customer. But if we do not ask for their business, or even try it's an opportunity lost. 

Jeff Bollinger

Agree 100%, and I've always found it so frustrating that the easiest money is most often neglected.  The best dealers I"ve worked for had a process in place to start the lease end process 6 months out, best case rolling them into a new one, worst case selling an extended warranty.

It's the farming analogy I use constantly, which also applies to online leads, equity clients, damn near anything.

You're planting seeds right now, they'll need a little bit of attention, and you won't harvest today, but you need to earn a paycheque for the foreseeable future, why not have a couple deals in your back pocket every month?

Chris K Leslie

Yeah we try and manage as many of these as possible. There should be no reason someone is just coming by to drop their lease off and not leaving in one of our cars. 

 

Christian Younggren

Morgan,

Managing it is a must. Since we all know the lease due date, it's not too difficult to set up a plan for how to approach the leasee 90-60-30 days out from lease expiration.  

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