quote:Originally posted by Yoda:
My goodness this is so simple. People in this industry are so ignorant sometimes it hurts.
Ouch I'm in pain.
You are aware that most dealers have an agreement with lease companies that after the first three months of renewals the over pay is split 75% (for the dealer) and (25% for the lease company)? Shame on you Leppert you absolutely know this or should or get out of the advice business.
Secondly shame on any rep that allows a lease to get anywhere near less than 18 months left on a lease. See my other posts regarding selling to someone not in the market. Has dumb become the new normal?
Peace out.
I agree with your first point, but on the second regarding the time at which to upgrade a customer, you're leaving a LOT of money on the table by rolling in that much buyout with each upgrade. If the customer is paying $1,000 per month, rolling in 18 payments could cost you up to $18,000 in revenue and profit. I don't know how you're paid, but that would make a big difference to my paycheck. I know there's a greater risk of competition getting in the longer I let the lease ride, but if I keep the client happy, they rarely shop & even more rarely leave for the competition. That's a risk I'm willing to take in most cases for significantly more commission.