When engaging with customers through marketing it can be beneficial to either finance or lease customers, depending on the strategy that makes the most sense for your dealership. Both have positive points that can resonate with prospective customers and be highlighted in your marketing.

Ownership

Start by emphasizing the benefits of ownership, such as having equity in the vehicle and the ability to customize or modify it. You can do this by highlighting that while monthly payments may be higher than leasing once the loan is paid off, there are no more payments. The customer will not have to worry about any mileage restrictions, and they are making a long-term investment where the vehicle’s value can be retained or even appreciate over time.

Leasing

When leasing you can emphasize that leasing typically offers lower monthly payments compared to buying, making it more affordable in the short term. The customer has the opportunity to drive a new vehicle every few years, often under warranty, with access to the latest technology and features. Leased vehicles are usually under warranty, reducing the cost of maintenance and repairs. Dealerships benefit from stronger residual values on leased vehicles because they retain ownership of the vehicle at the end of the lease. This can result in better profitability when the vehicle is resold. Leasing encourages customers to return to the dealership multiple times throughout their lease, potentially leading to more frequent transactions and opportunities to upsell or cross-sell other products and services.

Which strategy is right for your dealership?

When it comes to which option is best for you, the dealer, there are a lot of factors to take in. Car dealers generally prefer selling cars over leasing them, as selling a vehicle outright results in a larger upfront profit for the dealership. When a customer leases a car, the dealer earns money primarily through the monthly lease payments, which are usually lower than if the customer had purchased the vehicle. This, of course, depends on your sales team and strategy in both the front and back end of the sale. However, leasing does provide some advantages for dealers as well. Leases create repeat business, as customers will often return to the dealer to lease a new vehicle when their lease is up. This can lead to more long-term revenue.  Leasing also allows dealers to move inventory more quickly, as leases are typically shorter-term than financing the purchase of a vehicle.

When marketing either option, consider your audience’s preferences, lifestyle, and financial situation. For instance, young professionals might be attracted to leasing for lower upfront costs and newer models, while families might prefer buying for long-term savings and ownership benefits. It’s essential to tailor your dealership digital marketing message to highlight the advantages that resonate most with your target demographic.

Whichever direction you chose is best for your dealership marketing can all be done within the same ways. Utilize online channels like social media, search engine marketing, and email marketing to reach potential customers effectively. Use data to tailor messages and offers to individual preferences and behaviors, whether they’re interested in buying or leasing. Provide clear, straightforward information about the benefits and processes of both purchasing and leasing to help customers make informed decisions.

For help developing a marketing plan around both finance and lease customers, call us today at 877-958-4524 or contact us online.