• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Curious if any of the dealers here are doing any used vehicle leasing?

Jump to latest Follow Reply
Viracocha

Viracocha

Boss
Jan 6, 2010
114
43
Awards
3
First Name
Cooper
#1
Full disclosure, i work for a company that provides it. We are interesting in learning if dealers have any aversion to offering used vehicle leasing to their payment shoppers. We plan on becoming aggressive in the space and are looking to learn more about what the sales people/desking managers and F&I people feel is important to effectively offer it to their customers.

I assume that most important would be to integrate with desking platforms, enable website plugins to show default payments on eligible vehicles as well as ensure that compensation is in line with finance reserves. Does anyone have any thoughts or opinions on the subject?
 
#2
I am interested in used leasing, and I don't require a whole bunch of plugins and development on your side.

Need a portal to submit applications to you. Route One is my preference.
Need a simple to follow calculation method and residual guide. A vin driven portal for residuals would be great.
Need competitive residuals (since that is ultimately what has the greatest impact on payment).

Absolute must...need you to do business with an Independent dealer.
 
#3
Cooper - good question about aversion to used car leases. I too work at a company that can do them, but we are not in the business of actually transacting. We incept the leasing idea into the customers' heads and show the dealers what programs are available. Most dealers do not realize how many amazing programs are available outside of their captive lender.

With that said, interest in leasing, in general, has fallen off a cliff while lenders are not offering the aggressive lease programs they once were. We are currently tracking an 8:1 ratio of loans to leases being delivered (franchised and independent stores combined). For every 8 loans, there is 1 lease. Franchised dealerships typically have a tighter ratio in normal times.

CULA and DRIVRZ banks have been the kings of used car leases. It sounds like DRIVRZ might be going through some organizational changes that are making them a little tougher to work with of late. I am looking forward to some normalization around leasing as it truly is the smart approach for dealers who wish to keep a pipeline of customers coming back regardless of economic situations.
 
#4
Alex Snyder said:
Cooper - good question about aversion to used car leases. I too work at a company that can do them, but we are not in the business of actually transacting. We incept the leasing idea into the customers' heads and show the dealers what programs are available. Most dealers do not realize how many amazing programs are available outside of their captive lender.

With that said, interest in leasing, in general, has fallen off a cliff while lenders are not offering the aggressive lease programs they once were. We are currently tracking an 8:1 ratio of loans to leases being delivered (franchised and independent stores combined). For every 8 loans, there is 1 lease. Franchised dealerships typically have a tighter ratio in normal times.

CULA and DRIVRZ banks have been the kings of used car leases. It sounds like DRIVRZ might be going through some organizational changes that are making them a little tougher to work with of late. I am looking forward to some normalization around leasing as it truly is the smart approach for dealers who wish to keep a pipeline of customers coming back regardless of economic situations.
Click to expand...
DrivrzFinancial - that's us Alex! We are doing a bit of re-organization, but we are also extremely interested in helping our dealers (yes TallCool1 that includes independents!) be more consistent with presenting lease options on all of their inventory. We feel that there is an incredible opportunity to better retain your exisitng pre-owned customers by rolling them into shorter term leases vs long term loans so there is a better chance at upgrading them in a shorter period of time. In doing some mystery shopping we have seen some of our existing dealer customers not doing a great job of offering the option. I was hoping to spark a discussion here where we could perhaps learn what the market wants, and see if we had some gaps to address. I had considered that perhaps by making payments easy to market/advertise may bring higher penetration. Same with desking solutions. What is the solutions you guys have Alex and are we a part of it?
 
  • Like
Reactions: Tallcool1
#5
Viracocha said:
DrivrzFinancial - that's us Alex! We are doing a bit of re-organization, but we are also extremely interested in helping our dealers (yes TallCool1 that includes independents!) be more consistent with presenting lease options on all of their inventory. We feel that there is an incredible opportunity to better retain your exisitng pre-owned customers by rolling them into shorter term leases vs long term loans so there is a better chance at upgrading them in a shorter period of time. In doing some mystery shopping we have seen some of our existing dealer customers not doing a great job of offering the option. I was hoping to spark a discussion here where we could perhaps learn what the market wants, and see if we had some gaps to address. I had considered that perhaps by making payments easy to market/advertise may bring higher penetration. Same with desking solutions. What is the solutions you guys have Alex and are we a part of it?
Click to expand...
So after reading the post by @Alex Snyder I went to your website just for fun I tried to log in and found that I had a login and password. Did you used to have a different company name? I recall having a lease lender that pivoted hard into the Tesla market. Was that you?
 
#6
Viracocha said:
DrivrzFinancial - that's us Alex! We are doing a bit of re-organization, but we are also extremely interested in helping our dealers (yes TallCool1 that includes independents!) be more consistent with presenting lease options on all of their inventory. We feel that there is an incredible opportunity to better retain your exisitng pre-owned customers by rolling them into shorter term leases vs long term loans so there is a better chance at upgrading them in a shorter period of time. In doing some mystery shopping we have seen some of our existing dealer customers not doing a great job of offering the option. I was hoping to spark a discussion here where we could perhaps learn what the market wants, and see if we had some gaps to address. I had considered that perhaps by making payments easy to market/advertise may bring higher penetration. Same with desking solutions. What is the solutions you guys have Alex and are we a part of it?
Click to expand...

Too funny!

Yeah, we've been stoked to see your programs outperforming the captives. I personally love seeing competition out there. And FRIKINtech (my company) will continue to do its part in putting the best payments for the dealer and customer into the first pass. Happy to show you what we do some time - DRIVERZ is definitely a part of it!

A little tidbit of interesting information: we just began tracking the sales where the customer engaged with our solution. The number of cash deals has been quite low! Our SERVICEiQ product is showing 1% of the deals as "cash" (used a credit union check or actually wrote a check) against the dealer's typical 10-20% of all deals being cash. One thing we do differently is we show the consumer the lending institution right under the payment. I'm theorizing that trust, via the lender being branded along with seeing real payments on every car, is reducing the time a customer spends working with outside parties.
 
#9
Alex Snyder said:
@Viracocha here's a car where your used car leasing program is beating Ally today: a Timbrook Kia illumiQUOTE VDP <--- that's one of the things FRIKINtech does.

I'm posting a screenshot here because the payment program is dynamic based on the customer and what the dealer configures for profit targets, etc. Programs are updated daily.

View attachment 7377
Click to expand...
Thats awesome. How are you doing the calcs? Are you utilizing our residuals and MF? Do you have an API?
 
#10
Viracocha said:
Thats awesome. How are you doing the calcs? Are you utilizing our residuals and MF? Do you have an API?
Click to expand...

We have the deepest integration Market Scan has ever done. It is so deep that when a setting is changed in our settings it becomes the same setting within the mDesking solution. Deal data can be passed back and forth as well. If a dealer has our automation firing from their CRM, on their website, in their marketing, or into their service drive, any dealer on mDesking can pick it right back up.

That is another way of saying, we work with Market Scan's engines.
 
Top Bottom
Back
Jump to latest Follow Reply
Jump to latest Follow Reply
Menu