Rising lease penetration isn’t a new phenomenon.
Though the industry suffered a major setback during the financial crisis of 2009, leasing has largely had an upward trajectory and currently accounts for roughly one quarter of new car sales in Canada and even higher in the luxury segment.
With this significant slice of the market showing no sign of slowing, it’s no surprise that leasing has affected what’s on offer in the financial services office.
It’s true that a customer might not need mechanical-breakdown protection since the factory warranty will cover them throughout the typical lease period. Products such as credit insurance are also not as relevant with no loan to protect. Despite this undeniable reality, dealers should not be discouraged; what is lost in the more traditional F&I product mix is made up for in programs like pre-paid maintenance, lease-end wear waiver and appearance protection.