Page 25 - On The Move - Volume 18, Issue 3

One-Pay Lease: By Justin B.

Gasman
A Valuable, but Little-Used Sales Tool
A V al uable , bu t L i t t le - U s e d S ale s T o ol

The one-pay lease is a way to purchase a vehicle by writing the dealership a check for the
total of payments on a 36-month, single-payment lease. At the end of the 36 months, the
customer can choose to renew the lease, turn in the vehicle, or buy it outright.

A recent F&I Master’s class taught when you get a cash buyer who is factory rebate that is connected to
me about having a conversation using an outside lienholder. You still financing, the dealership’s selling price
with purpose. Since we are having need to present your F&I options is the same whether it’s cash, lease, or
a conversation, let’s make it count – menu, however. Most F&I managers retail installment sales contract.
especially if you are working in a high- will print up a CASH menu and start
line dealership catering to affluent their presentations. After reviewing the Appreciate and welcome the cash
customers with higher credit scores. total cost of each product, they may deal. The best part about a cash deal?
forget that if the customer is using an Not worrying about funding issues!
Many business managers forget, or outside lender, the customer ultimately The only thing you have to do is be a
aren’t familiar with, a seldom-used will be making a payment. great salesperson.
sales tool: the one-pay lease. To a cash
customer, this is a way to purchase In this instance, it’s still important to As motivational speaker Jim Rohn
the vehicle by writing the dealership review with your customer, based once said, “If you stoke the fires of their
a check for the total of payments on on the terms of their own financing, desires, then you’ll not fail to make the
a 36-month, single-payment lease. what the base payment will be and sale!” Remember, if a person can sit
One advantage is a lower interest rate, the impact of adding protection items down at your desk and write a check
which means lower payments. Another on that monthly payment. Ultimately, for $85,000, they certainly can afford
is that the upfront payments make you’ll close the sale on a payment, another $5,000-$10,000 for whatever
credit approval easier. even though it’s “cash.” protection options they want.

At the end of the 36 months, the Present these types of cash deals as Don’t be afraid of the cash deal
customer can choose to renew the finance deals with different payments or the cash buyer. They usually
lease, turn in the vehicle or buy it and you’ll be surprised how much are disciplined, persistent, highly
outright. more F&I products you will enroll your intelligent people with four common
customer in. Show these products to traits: capacity, ability, stability, and
The cash deal has evolved and them in terms that fit their budget. On equity. They want to buy; they just
sometimes is a financing deal in actual-cash deals, sell the value in the can’t be sold. You’ll have to earn it the
disguise. Customers have been product – that’s all you can really do. old-fashioned way, by being genuine
known to walk into a dealership with If they use outside financing, appeal to and serving them with the heart of a
a shoebox filled with dirty 20- and their budget, and explain the benefits teacher and the right spirit of intent.
100-dollar bills they hoarded during of your products.
the pandemic. Now that the world isn’t Remember to try a one-pay lease for a
ending, they want to get rid of that cold How does cash affect pricing? great cash conversion, present outside
hard cash. Remember, if you receive I get asked all the time if finance deals like regular finance
$10,000 or more in cash, report it by customers can get a better price if deals, and on actual cash, put on your
submitting a FinCEN8300 form to the they pay cash. My answer is always selling shoes and tap in!
IRS. If you aren’t sure, my advice has the same: “We give the same great
always been, “When in doubt, fill it out!” pricing to ALL of our valued customers, Justin B. Gasman is financial services
regardless of how you choose to pay for director at McCaddon Cadillac Buick in
What is a cash deal in disguise? That’s the vehicle.” Other than the occasional Boulder, CO.
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