Estimates are that the pool of off-lease vehicles will grow from 3.6 million in 2017 to 4 million in 2018. This is nearly double the pool of off-lease vehicles in 2015 at 2.6 million. Although car leases can help drive sales of new cars, they also pose greater risks for the auto industry.
Used vehicle prices will continue to trend down, as all of those leased vehicles return to the market. The National Automobile Dealers Association’s Used Car Guide price index tracked used-vehicle prices as they fell 23% in 2016, which is much quicker than the average annual rate of 18%. Some automakers are already beginning to feel the consequences of off-lease vehicle growth.
With the glut of cars coming off lease and falling used car prices, now is a good time for OEMs, Captives and their dealers to rethink their current lease purchase process. The ability of car companies and their dealers to better manage the flood of off-lease vehicles has never been more important.
Keeping your current lease customer in the ‘family’, capturing their next loan and realizing higher PVRs, are all good reasons for making the lease purchase process as simple and efficient as possible. Offering a better, modern customer experience for lease purchase also reflects well on the brand.
The good news is the technology needed to power a seamless online lease purchase experience now exists.
What if you had a site where your current lease customers could go to verify (an update) their information, select their desired loan terms, purchase protection products, upload the required loan stips, and review their final loan contract − all done from the comfort of their home?
And what if you applied that same technology to your call centers to produce a more efficient standardized process for your sales associates?
Now is the time to make lease purchase a part of your overall digitalization strategy and use modern technology to move your customer through a process that fosters retention, loyalty, and CSI.