Path to Proactively Preventing Lease Buybacks

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In the last two years, consumer leasing of new vehicles has dropped 6.5% – from 30.3% in Q4 2019 to 23.8% in Q4 2021. Source: Experian Path to Proactively Preventing Lease Buybacks Faced with rising lease prices and skyhigh equity in their vehicle, lease customers returning to market are increasingly buying out their leases. Proactively engaging lease customers is key to preventing buybacks – and customer defection. WHAT TO DO ̆ Touch base with customer to gauge satisfaction with their current lease and address any immediate concerns. ̆ Set the stage by discussing current and projected rates and availability. ̆ Inquire on future lease plans; changes in their needs. 1 In 2021, dealer loyalty dropped 1.6% while manufacturer and brand loyalty each flipped just 0.2% during the same period. Source: IHS Markit Leveraging that equity, customers are trading in at competing brands or rooftops to get the new vehicle they want, posing significant immediate and future challenges to customer loyalty rates. WHAT TO DO ̆ Set expectations of current rates and availability. ̆ Focus on customer experience to understand their hierarchy of wants and needs. ̆ Explore pre-order or reserved sales. ̆ Emphasize the importance of building their personalized end-of-lease plan to get them into the vehicle they want.

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