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Finance companies alter landscape for customers who want to lease

November 17, 2010
 A number of captive finance companies recently eliminated or severely scaled back the leasing options they offer consumers. To help dealers navigate customer inquiries about the new leasing climate, the NADA developed talking points for discussions.

Leasing is an attractive financing alternative for many consumers, and dealers regret that some automakers’ captive finance companies have taken the extreme action of eliminating or severely limiting leasing options.

Dealers are particularly concerned about their customers who may have no other means of taking delivery of a new vehicle. However, dealers also recognize both the realities of the marketplace (including rising fuel prices and falling resale values) and the need to maintain healthy, sustainable credit sources to finance vehicle sales.

The NADA advises dealers to relate to their customers that:

• Dealers expect that automakers will work aggressively to find solutions that will give dealers other options to meet the financing needs of their customers.

• At the same time, dealers will continue to work with other credit sources to meet those customer needs.

• In discussions with automakers, dealers will continue to focus on dealer profitability, seeking viable options for consumers and finding ways to blunt the adverse impacts that a leasing decline will have on the industry.

• If a consumer is looking to purchase a vehicle, dealer-assisted financing is a proven and competitive option for car shoppers.

• Whether a consumer is considering buying a vehicle or leasing one, shoppers are encouraged to visit AWARE, at www.autofinancing101.com. It’s a consumer-friendly, educational online resource tool about financing cars and trucks.

 

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