We’ve all heard it – “cash is king.” But is there an alternative? Does your day sound like this?:
First deal of the day – cash deal
Second deal – cash deal
Third deal - you guessed it – cash deal!
Where did all these people get all this cash? It seems we have had an influx of cash buyers, and it doesn’t show signs of slowing down. So, what can do we do about it? We can either embrace it or offer solid alternatives that are beneficial for both the client and the dealership.
Think of it this way: When someone pays cash for a vehicle, they take on the risks of resale value or technologies becoming outdated or even a higher risk of failure.
However, what if there was a way to mitigate any of those risks, enhance customer satisfaction, and increase repeat or referral business?
A one-pay lease was designed specifically for the cash buyer, allowing customers to pay nearly half the price upfront, have no payments for three years, and have the manufacturer guarantee the value of the vehicle.
In other words, "Mr. or Mrs. customer, paying cash may be a good way to purchase this vehicle. In fact, there is less paperwork, making my job a little easier. However, by paying the complete balance upfront, we are not able to insulate you against an ever-changing market. We have a program designed specifically for those who pay cash for their vehicle, allowing you to write one check today that provides you options. One is by establishing a predetermined future value, and as a bonus, the money you pay upfront will be significantly lower, allowing you to keep your money invested in your portfolio.”
Consider this: With physical damage, whether it’s from texting and driving, hail damage, or something else, as long as it’s repaired by insurance, Carfax will forever reveal that damage has been done to the vehicle, thus reducing the overall value and putting us at risk to what the market will bear for the vehicle, even if it was of no fault of our own. With the lease, the manufacturer takes on that risk, as long as we have the vehicle repaired.
Oh, and the customer would be able to pay roughly half the price for the vehicle, leaving the balance in their accounts, and thus allowing them to spend the amount they had planned to spend today and giving them the ability to purchase two vehicles for the same amount over a six-year time frame. This provides them with the ability to upgrade the vehicle to one with new technologies, remain under the factory coverage, and reduce the exposure to mechanical failures.
Wouldn’t it make sense to allow the manufacturer to take on all the risks and give the customer the ownership experience they were hoping for?
So when taking the leadership role as an F&I professional, let’s take the time to share the benefits of a one pay lease with our customers and enhance our teams’ repeat and referral business and customer satisfaction.
Trent White is a national training consultant for the Automotive Training Academy with almost 30 years of experience helping automotive dealerships.
EDITOR'S NOTE: This article was authored and edited according to F&I and Showroom editorial standards and style. Opinions expressed may not reflect that of the publication.
