Vehicles are getting more expensive. A substantial down payment and high monthly payments make owning a vehicle difficult. Leasing is a way to reduce the monthly cost of having a vehicle, helping to keep your cash flow intact.
THE FINE PRINT OF LEASING. UP FRONT.
Paying the total price in cash is still the least expensive way for your customer to obtain a vehicle.
If you cannot pay cash, then a loan or lease with the shortest term available to you will lower the “carrying cost”.
When leasing, you are only paying off the depreciation amount and not repaying the entire value of the vehicle.
For businesses, leasing allows you to manage your cash flow by not requiring full payment up front.
Also, you pay taxes only on the monthly payments, rather than up front on the full value of the vehicle.
BENEFITS OF LEASING VEHICLES FOR DEALERS AND BROKERS
Lower monthly payments make advertising easier, while minimizing the impact on cash flow for your customers.
Increase repeat business with leasing by ensuring that customers do not end up in a negative equity position.
Flexible payment structures that are tailored specifically to your clients’ needs.
Leases are available on cars, vans, light-, medium- and heavy-duty trucks, various types of equipment and exotic vehicles.
WS Leasing’s retention department provides dealers with End-Of-Term (EOT) reports and also sends letters to customers, referring them back to the originating dealership, which increases the likelihood of repeat business.
Dealers and brokers have the ability to rewrite leases at end of term.
Returned lease vehicles are a good source for used vehicles, if customer does not buy out or rewrite lease (trade-in).
Dealers and brokers have the opportunity to purchase off-lease vehicles to retain in their inventory for resale. These off-lease vehicles often provide better grosses than the average used units from other sources.
BENEFITS OF LEASING FOR CUSTOMERS
Lower 1st day cost – Generally the 1st monthly payment and security deposit are the only payments needed to drive away in your new vehicle.
Allows customers to drive a wider range of vehicles than a traditional finance budget would allow, due to shorter term leases.
Flexible vehicle leasing terms allow for you have leases that range from 12-60 months.
Residuals as low as $250 dollars.
Taxes are paid during the course of the lease through the lease payments, instead of up front to improve initial savings at purchase.
Leases offer tax benefits for businesses and the self-employed as they can often write off a portion of the tax they pay for the vehicle.
Open-end Leases have no kilometre restrictions or wear and tear penalties.