Up Your Gross – 10 Reasons They Should Lease

I haven’t spent much time talking about leases. However, they can be a great way to up your gross profit and, ultimately, new-car sales commissions. Leasing new cars is one area that many salespeople pay little attention to. I don’t know if it is because they’re unfamiliar with leasing or their customers don’t believe in leasing. But there is great potential for creating gross when you lease cars.

Today’s car buyer is not all that familiar with leasing vehicles other than what they see advertised on TV with low payments. The automakers spend a fortune advertising low-priced leases, yet most dealerships lease very few vehicles. I have found that dealerships that spend time and resources educating their salespeople about leases ultimately lease more cars. The good news for us is that we have an opportunity with leasing to increase our gross and, ultimately, our commissions when we are focused on leasing.

Up Your Gross With LeasingSure, we know how leases work. But most of our customers don’t understand. Unless we do a very good job of selling them on the lease, their standard answers are. “But I want to own the car,” or “I don’t want to rent a car.” So let’s spend a little bit of time talking about leases. Plus, you can sell more cars that, ultimately put more money in your pocket. After all, this is why we are all here anyway.

We all know that many of our customers are payment oriented. So if we can educate them on leasing and show them how to get a new car with lower payments, we have a better chance of making a deal. Leases come in a variety of different terms. The most common and a large percentage of them are for 36 months. With that thought in mind, let’s cover some of the things we need to talk about to your customers when pitching them on a lease.

Selling the Lease and Up Your Gross

When talking leases to the customer, we not only have to sell the car, but we also have to sell the lease. Leases are often mysterious to the customer, and they’ve heard different kinds of horror stories about costs at the end of the lease and mileage charges. So the 1st thing you need to cover is their mileage concerns. You don’t pitch a lease to a customer that puts on 30,000 miles a year, but that is uncommon with most buyers. Find out their mileage requirements and go from there. They are a perfect leasing candidate if they fit into the average 12 to 15,000 miles a year.

10 Points to Turn the Car Buyer into a Lessor

1. You can put down little or no money and have much lower payments than buying.

2. Your vehicle will be covered under warranty the entire time you drive it, so you don’t have to worry about costly repairs.

3. You only pay for the amount that you use the car rather than paying for the entire car, this way, you could have a new car every 3 years and save money.

4. As technology advances quickly, many cars may be outdated in a few years. Therefore wouldn’t it be much better to have an up-to-date, more fuel-efficient vehicle every three years

5. Many of our managers here at the dealership lease their vehicles. That way, they know they will always have a new car that’s covered by warranty, and they will always have the latest model.

6. You don’t have to worry about being upside down on your car loan and paying for something worth less than you owe.

7. On a conventional five or six-year car loan, you could find yourself paying for expensive repairs and making the monthly payment simultaneously during years four, five, and six.

8. At the end of your lease period, all you have to do is drop off the car and the keys because leasing allows for everyday wear and tear.

9. Yes, you own your car after paying off your loan in 5 years, but over those five years, you would have made much higher payments than you would if you leased the vehicle and had an old car.

10. Besides having the option to return your vehicle at the end of the lease, you can purchase it for the fixed amount on your contract. Also, you can sell it if you choose. Plus, you can trade it in at any time during the lease period or return it and walk away. When you lease a vehicle, you are in the driver’s seat, and you have more options than you would when you purchase.

Teach Your Customer About Leasing

When you can get a customer interested in leasing their next car, there is usually less emphasis on the price and more emphasis on the payments, which always creates more gross. Most customers don’t fully understand leasing or the financial aspects. When you focus on selling the car and the benefits to them when they lease, it can very often turn into more car sales commissions for you. Sure, there are times that you’ll end up with a mini when you lease a car, but a mini is much better than no deal at all.

Another bright spot for the car salesman when it comes to leasing is how often you see them again. If you do a good follow-up to stay in touch with them in another 2 or 3 years, they will return to lease another car. You know they will need a car 24 or 36 months after delivery. Lease a few cars to your customers every month, and you will have a steady stream of customers and traffic coming in for cars in the future.

Later, Fresh Up on the Lot


Start Selling More Cars Now – Start Making 6-Figures Selling Cars


DC · April 3 at 9:25 pm

Skip the Sales Manager, at a large store they don’t really do the hiring anyways it is mostly the GSM. Ask for the GM. If you can’t get in front of him leave your application and ask for his name email and phone #. Call the next day and follow up with an email (being very corrigable and polite) the following day. Follow up is one of the most important things when selling cars, this will show them your capacity and will be appreciated.
-17 years Automative Sales Manament.

KB · January 2 at 2:10 pm

Hi De’Andre,

Every dealership is different, but it is not unusual for the applications to be accepted by the receptionist. That way the Sales Manager can go through them when they have some time. Go ahead and leave it with the receptionist and follow up with a call in a few days.


De'Andre · December 19 at 7:21 pm

Hey, I just recently discovered your website because I had begun doing research on how to be a Car Salesman. I live in Cleveland, OH and I need help on landing a Car Salesman job. I want you to help me with a problem I am having. When I go to a dealership I ask for an application and then fill it out completely. I then take it to the receptionist and ask if I can give it to the Sales Manager. Every Sales Manager I have went to is extremely busy or impatient to have a conversation with me. How do I get the job if the Sales Manager is busy? Because if I don’t give it to the Sales Manager my application will just sit there.


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