Strategies to Avert Lease Buybacks and Anchor Customer Loyalty

Fellow dealers, the landscape of car leasing has encountered significant shifts, with consumer leasing of new vehicles dropping from 30.3% to 23.8% from Q4 2019 to Q4 2021 (Experian). This trend underscores the importance of dealership strategies in retaining customer allegiance and preventing lease buybacks.

Elevating Engagement Before Lease Ends

Early and consistent engagement with lease customers is pivotal. With lease rates waning, your approach should be preemptive and personalized.

What You Can Do:

• Maintain consistent touchpoints with customers to gauge satisfaction levels and address any apprehensions or needs.
• Offer flexible end-of-lease options to bridge gaps, such as extensions or upgrades, if their preferred model isn’t available.
• Provide transparent communication about future vehicle rates and availability, instilling confidence in your customers’ decisions.

Strengthening Dealer Loyalty Amidst Brand Loyalty Fluctuations

Dealer loyalty experienced a 1.6% drop while manufacturer and brand loyalty saw a marginal 0.2% uptick during the same period (IHS Markit). These figures reveal that customers are marginally more inclined towards brand loyalty, presenting dealers an opportunity to tighten the loyalty loop.

What You Can Do:

• Craft personalized experiences that resonate with customers’ unique preferences and needs.
• Reinforce the value of dealership loyalty with benefits that go beyond the transaction, such as exclusive access to new releases.

Turning Lease Expiry into a Loyalty Opportunity

As leases approach their end, customers often contemplate alternative options. Your objective is to create an experience so compelling that your dealership becomes their only choice.

What You Can Do:

• Customized incentives like loyalty discounts or first-look privileges can make customers feel valued and exclusive.
• After-sales support that excels in convenience and quality can make your dealership indispensable.

Embedding ValueShield® in Customer Retention

The introduction of ValueShield® offers "True Accident Forgiveness" at the dealership level, preserving the trade-in value of vehicles post-accident and ensuring customers don’t bear the cost of unexpected depreciation. This innovative offering can serve as a cornerstone for enhancing trust and loyalty.

Conclusion

Data and trends highlight a clear path for dealerships to proactively safeguard against lease buybacks and bolster customer retention. With strategic measures and ValueShield® integrated into your approach, your dealership is poised to not just survive but thrive in the evolving automotive landscape.

📧: nelsonauto@gmail.com

📱: 512-751-5669

Connect with me to learn how these strategies and tools can transform your customer retention journey.

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