Drive More Sales by Reaching Out to Payment Buyers

Over 91% of vehicles sold are financed, according to CNW Market Research. The car payment is part of the individual or family budget! New car advertising promotes special financing using attractive monthly payments. The Internet is being used by more and more car buyers of all ages! These are all known facts in the automobile industry.

Experienced sales and finance individuals deal with the payment buyer on a regular basis at the dealership trying to find the right vehicle within an affordable price range for the buyer. As Internet activity grows in the pre-owned vehicle marketplace –over 64% hitting dealer sites while shopping for a used vehicle according to a recent J.D. Powers study–there are payment shoppers in this mix.

Industry publications and consultant articles have indicated there is growing consumer confidence in purchasing a pre-owned vehicle because of improved manufacturer quality, certified programs; and better disclosure of vehicle information through pictures, videos, chat sites and educational sites. Buyers of all ages are searching either for specific vehicles or vehicles that fit their budget and in many instances they are unable to get clear pricing on a vehicle and/or obtain estimated payment on a car or truck.

Today’s buyers are looking to maximize their spending dollar and in many cases they want to be able to move to the next hottest item. Is your website offering your potential customer all of the different purchasing options available to them? You may show them the vehicle price, but are you giving them the opportunity to review other buying options available to them. Less than 10% pay cash for their vehicle so they should be made aware of other funding options such as lease payments. By providing the payment buyer with a lease payment you may trigger the buyer to contact your dealership to discuss interest in a specific car, SUV or truck.

Why is leasing attractive to payment buyers? Here are a few reasons according to a recent CBS news report . . .

• Less Upfront Cash: Most leases require a smaller down payment than for a purchase which makes the car or truck they want more attainable and frees up ash for other things.
• Lower Monthly Payments: Because they only pay for the portion of the vehicle they use payments are typically lower than a typical loan
• More Car, More Often: The buyer can get more car for the monthly payment and they can select the length of the lease so they can move to another vehicle in 24 months or longer.
• Lower Sales Tax: In many states, the buyer only pays sales tax on the monthly lease payments, instead of the entire value of the vehicle.
• Fewer Maintenance Headaches: Many buyers lease for a term that coincides with the length of the manufacturer’s or transferable warranty. This ensures the vehicle is always covered under the warranty.
• Convenience: The buyer does not have to worry about selling their used car or they can elect to buy it for the residual value at lease end.

What is the upside for the dealer?

• Differentiate your web inventory to entice the consumer to telephone or contact your sales department.
• Increased telephone activity from interested buyers.
• Sell more vehicles at list price.
• Opportunity to interact with the payment buyer to facilitate a lease or purchase.
• Develop repeat customers when the current lease expires.

Payment buyers in most instances contact a dealer because they are interested in upgrading the quality of car they drive. This applies to new and pre-owned vehicles, but in many instances the buyer is not aware that they can lease a pre-owned vehicle, which means it is a relatively untapped consumer niche that should be addressed.

How can your dealer website have a competitive edge? Post monthly payment options on late model vehicles next to the list price on your website inventory. You might say “Simple solution, difficult process!”

Yes, in the past it was difficult, time-consuming paper shuffling process for dealers to place payment information and necessary disclosures in both print and Internet advertising, especially related to pre-owned vehicles. This process can be simplified by using the autoLeaseAD.com lowest payment advertising service – we provide fully disclosed lease payment information that is updated daily based upon your dealership’s qualifying inventory targeted to the payment buyer consumer.

We have removed the “difficult” in calculating low lease payments for the sales staff and created an advertising inducement for the consumer to contact your dealership to discuss their vehicle and payment interests. By making a telephone call to your dealership, the sales process of finding the right solution – lease or purchase – is now in the hands of the sales person and no longer a continued Internet search!

Used Car Leasing a phenomenon whose time has come…

Yes, you CAN lease a used car! Used car leasing is the fastest growing segment of consumer leasing. As consumers and dealers become educated as to its efficacy they become proponents of this underused option. Leasing is a viable alternative to buyer’s driving financed pre-owned vehicles.

Let’s review some of the Consumer’s advantages of leasing a used car.

1. Avoid the rapid early-years depreciation of a new car. Leasing a slightly used vehicle can result in a significantly lower payment than that of a “new” vehicle of the same type due to the previous owner taking the initial big “hit” in value.
2. The convenience of being able to return their vehicle or the value of buying it for a predetermined amount at the end of the lease can be reason enough to lease. The option to buy the vehicle for a specific price or return it no matter what the market is like at the end of the lease term is a “win-win” option.
3. Less cash upfront allows the consumer to drive the vehicle of their choice with as little money changing hands as possible. This is particularly true with pre-owned vehicle leasing. Little or no money down, lower monthly payments, sales tax spread out over the monthly payments. They can drive “more” car for their money.
4. Gap protection provides security if the leased vehicle is stolen, destroyed, or totaled in an accident. No worry about being upside down on the lease term.
5. Easier to trade out a lease – Many of the major lessors will allow lease assumptions and several websites have sprung up that act as a marketplace for this activity.

Why should dealers promote Used Car Leasing?

1. Growing consumer confidence in late model vehicles offered through CPO programs.
2. Vehicle transparency on the Internet using detailed photos, descriptions and vehicle history tools plus extended warranties improve the consumer experience.
3. Attract customers that frequently turn over vehicles every 2-4 years
4. Attract monthly payment buyers
5. Leased vehicles typically sell at the asking price – a leased vehicle is a sold vehicle with additional backend profit
6. Increased turnover of more late-model vehicles
7. Create repeat customer base – use customer service tools to monitor lease expiration dates and customer contact.
8. The leasing process has been automated and simplified using available Internet tools.
9. Leasing rates are competitive with financing.

Who are the targeted customers for Used Car Leasing?

1. All segments of the population looking for monthly payments, quality vehicles and convenience.
2. Any qualified customer seeking a late-model vehicle – family sedan, sport, luxury, SUV, Minivan, or truck

How has autoLeaseAD.com simplified the Used Car Leasing process?

1. We automated the lease calculation process to provide “live” dynamic quoting capabilities.
2. We incorporate various funding facilities and their related requirements into the calculation process
3. We interface with your website vehicle inventory vendor to post “lowest payments” next to qualifying inventory items.
4. We provide full disclosure of terms on all lease quotes.
5. We provide each dealer with online tools to calculate leases “on demand” and to assist in print advertising of lease payments and disclosures.
6. We have an experienced staff to support leasing questions, educate dealers and implement used car leasing or to outsource the entire leasing process.

In summary, Used Car Leasing is designed to allow the consumer to get more car for the money; have a future value for their car guaranteed; and allows the dealer to ability to meet customer needs and car sales goals so it is no surprise that Used Car Leasing is the Phenomenon whose time has come…