A Testimonial about Retention...
A large Buy-Here-Pay-Here dealer from Texas decided he’d try out the Lease’T’Own program. About a year and a half after starting the program, he gave us a call. He said ”Do you know what’s wrong with your program? What’s wrong, is the fact that I didn’t find it 10 years ago!”
During the conversation, the dealer shared some valuable statistics.
His average repossession rate while doing Buy-Here-Pay-Here was 24%. That was the national average at the time so the figure was not surprising. He also received 24% of the cars back on Lease’T’Own®. Buy-Here-Pay-Here and Lease’T’Own® serve the same customer base so again, this figure was not surprising.
The HUGE difference between the two programs is that 80% of the cars he repo’d with Buy-Here-Pay-Here went directly to the auction. They were in such bad shape that it wasn’t worth even trying to fix them. Of the cars he took back with Lease’T’Own®, ZERO went to the auction. That’s right – ZERO – not a single one! On top of that, 55% of those customers who returned their vehicles ended up coming back for another car once they got back on their feet financially.
How is this possilble?
Because a key benefit of Lease’T’Own® is the flexibility!
If your customer runs into a financial bind, they know they are able to return the car. No questions – no penalties. They also know that when their situation changes, they can come back and get another car. The terms of the lease agreement and expectations are clearly explained at the time of the deal and the door for communication is left wide open. Take care of the customers and they will take care of you!