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Harnessing Lease Agreements to Drive Dealership Revenue: The Dealertouch Advantage

In the contemporary automotive market, dealerships are continually seeking innovative strategies to enhance their revenue streams and secure a competitive edge. One such strategy that has proven effective is offering vehicle leases. Leasing, as opposed to traditional purchasing, offers customers the flexibility of driving a new car every few years, often with lower monthly payments. This model not only caters to the consumer’s desire for the latest models and technology but also sets a foundation for a more consistent revenue flow for dealerships.

Why Leasing?

Leasing vehicles can be a substantial revenue generator for dealerships. First and foremost, it fosters customer loyalty; lessees often return at the end of their term, ready to enter into a new agreement. This cycle reduces the lapse in revenue that can occur when relying solely on the sporadic nature of car purchases. Moreover, dealers can benefit from the return of well-maintained, used vehicles which can then be sold as certified pre-owned options, creating yet another revenue channel.

Another advantage is the ability to offer vehicles at a more attractive monthly rate compared to buying, which can appeal to a broader range of customers. By providing a lease option, dealerships can tap into the segment of consumers who prefer not to commit to a long-term purchase or who enjoy the flexibility that leases provide.

The key to successful leasing lies in the complex calculations that underpin each agreement. These include depreciation, interest rates, and residual values, not to mention the taxes that vary by the customer’s location. It’s a process ripe for automation to ensure accuracy and efficiency, and this is where Dealertouch shines.

Dealertouch: Your Leasing Ally

Dealertouch is a sophisticated Dealership Management System (DMS) that simplifies the intricacies of lease agreements. With its advanced features, it takes the complication out of lease calculations and tax considerations, ensuring that dealers can offer competitive and accurate lease terms swiftly. This efficiency not only improves the customer experience but also frees up dealership staff to focus on other sales opportunities.

Automated Lease Calculations

Dealertouch’s automated lease calculator removes the guesswork from structuring lease agreements. By inputting just a few key variables, dealers can instantly generate comprehensive lease proposals. The system accounts for all factors that influence a lease, ensuring that each quote is tailored to the individual customer and their location, thereby accurately calculating the necessary taxes and fees. This level of precision and personalization can significantly reduce the margin of error that often accompanies manual calculations.

Tax Calculations Without the Hassle

One of the most challenging aspects of finalizing lease agreements is the accurate calculation of taxes, which can differ not just from province to province but even within local jurisdictions. Dealertouch’s DMS automatically updates to reflect the latest tax codes, ensuring that customers are always presented with the correct figures. This feature alone can save dealerships countless hours of administrative work and prevent costly mistakes that could potentially sour customer relationships and result in lost sales.

Closing Thoughts

Providing lease options presents a valuable opportunity for dealerships to increase their revenue and build long-term customer relationships. However, the complexity of lease agreements should not be underestimated. Dealertouch offers a solution that takes the complexity out of lease calculations, tax application, and agreement generation. With Dealertouch, dealerships can confidently extend leasing options, secure in the knowledge that they have the tools to manage this profitably and effectively, leading to increased customer satisfaction and dealership profitability.

In conclusion, as the automotive industry evolves, so too should the approach dealerships take to maximize their revenue. Leasing is more than just an alternative to buying; it is a strategic choice that can lead to sustainable growth. Dealertouch empowers dealerships to embrace this choice, providing the technological support needed to make leasing a cornerstone of a modern, customer-centric revenue model.

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