Leasing is a basic F&I fundamental, and though it has been put on a shelf for the last couple years it’s making a comeback because it offers customers flexibility, says Becky Chernek, founder of financing and insurance consulting firm Chernek Consulting in Oak Ridge, N.C.
“More and more dealers are seeing the opportunity that a lease now offers, and more and more F&I people need to wrap their head around it and train up on how to calculate a lease, how to present a lease, how to sell products with a lease, how to convert a customer from a cash deal or credit union deal,” Chernek told Automotive News.
For some customers, she says, it might be better to put them in a 36-month lease if it makes sense, with higher residuals and a higher advance.
“If I can take that difference and put it into where it makes sense, not only to get them out from under that trade but into a vehicle they like and also payments that they can afford because the residual is higher, it’s a win-win for the customer and the dealer,” Chernek says. “Leasing is a great opportunity for the most part to get customers back to the dealership. It’s a retention tool still and building customer loyalty.”