With monthly car payments on new vehicles now topping $700 and used car payments around $570, affordability is a pressing issue for today’s vehicle consumers.
As interest rates rise and vehicle prices remain uncertain, many drivers are looking for options. A segment of the market expected to grow to fit the needs of consumers is leasing, including Lease Here Pay Here (LHPH).
“It’s going to be a bigger segment because of the affordability,” said NIADA 20 Group Moderator Bill Elizondo.
To help dealers understand the intricacies of LHPH from payment structure to performance analysis, Elizondo is holding a one-day online workshop May 18. The class will run from 10 a.m. to 4:30 p.m. (EST). Registration is $299 for NIADA and 20 Group members. The group rate is $269. For non-members, the price is $395.
“We’re going to be talking about everything for anyone that’s ever thought about getting into lease here pay here, or been in the business for a short or long period of time,” Elizondo said. “We’re going to be talking about all the aspects and benefits for do this type of business.
“If you’ve been in one of the virtual classes I’ve done for lease here pay here, you’ll know my passion for this business. I will give you opportunities to understand a lot about this business itself.”
Elizondo, NIADA Senior 20 Group Moderator, trainer and consultant, has spent nearly 30 years training and leading high-achieving sales teams in the subprime and BHPH markets, including highly successful tenures with America’s Car-Mart and Superior Auto.
Elizondo points out LHPH is a great opportunity for a lot of different operators. As opposed to traditional BHPH, the dealer is still the owner of the vehicle and controls the title.
“You have a lot more capabilities,” Elizondo said.
There is a chance to offer lower payments to customers due to the residual value of the vehicle at the end of the lease. Elizondo points out the industry standard is 20 percent. As an example a $10,000 car may be leased at $8,000, providing a lower payment for the consumer.
“It’s a gamechanger and is available in a lot of areas,” Elizondo said.
There are several regulations and rules dealers must comply with. Elizondo said they will be covered in the workshop.
“There’s some positives and some negatives,” he said. “We’re going to talk all about that. We’re going cover the accounting, the best practices and at the end of the day, you’re going to have some great insight and information.
“The participation workbook that you’re going to be able to take with you and use at some point will have a lot of great information.”