Dealers continue to face limited inventory conditions and are looking for additional revenue channels within their stores. Today on Inside Automotive, we’re pleased to welcome Paul Sansone Jr., owner of Sansone Jr’s Auto Group, who has a new program for dealers called Dealer Controlled Leasing, a turnkey solution for subprime leasing.
For many years Sansone Jr. has been trying to marry the concept of consumers improving their credit, needing a car, and then getting a car. He initially started with a rent-to-own program and has since developed Dealer Controlled Leasing, which installs dealer-owned subprime leasing companies into dealerships and allows them to be in control of their own subprime market. The subprime market represents anywhere from 20-25% of all consumers depending on the market.
Dealers who are enjoying record profits might be hesitant to try something new with subprime leasing. However, these profits won’t last forever, so dealers need to explore other income opportunities now. The Dealer Controlled Leasing program focuses on short-term leases 12-48 months long. It is also a dealer-owned leasing product, and they are in control of the decisions. The risk is that you are lending your money to a consumer that has had a previously poor credit history. The most essential thing to determine is whether you are lending to a good customer with bad credit or a bad credit customer.
In fact, at Sansone Jr’s Auto Group, after a subprime leasing customer has made 50% of their payments, Sansone guarantees they can re-finance at a lower rate. The program also educates consumers and helps them improve their credit scores. Additionally, the Dealer Controlled Leasing supports its dealer partners with extensive onboarding and training.
To hear more insight from Paul Sansone Jr. and learn about the Dealer Controlled Leasing, watch the entire interview above.
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