Cash Back- Negative Cash Down- Lease
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Kyle Neal
In Legacy Desking you had the option to print lease pencils w/ negative cash down/ aka Cash back on leases with large sums of equity. This would allow the customer to see multiple payment options, with different amounts of equity refunded to to them.
In new desking there is a singular cash back option in the trade screen that now makes it so that you would have to print a minimum of 3 pencils to offer the customer the same options.
Shelby Parker
Great to hear your perspective, Kyle Neal! I have a few more questions for you:
- What specific scenarios or customer needs are impacted by the current limitation of having a singular cash back option?
- How frequently do customers request multiple payment options with different equity refunds during lease negotiations?
- Are there any specific features from the Legacy Desking system that you found particularly useful and would like to see in the new desking system?
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Kyle Neal
Shelby Parker
Hi Shelby,
1) I included attachments for clarification purposes.
2) In response to your first question: It is no different in providing customers multiple cash down options. In a lease the equity does not buy down the residual or the amount you owe, it buys down the payment. A car depreciates over time, you are less likely to recapture excess cash down out of lease. The point of a lease is to lease again, if like in the scenario attached (legacy pencil), if the customer applied all $9500 in equity, they would potentially have to do so again in the future to recreate a similar lease payment.
3) In response to your 2nd question: The majority of consumers (at least in our market area) are not proficient in understanding of a lease. A dealer that was being advantageous or greedy would take 100% of the equity to make the payment as low as possible to maximize their profit and probably not care to much to see their customer again or kick the can down the road so to speak. So customers due to lack of understanding and knowledge will not probably ask this question very often, but if your a dealer that believes the point of sale is the point of resale, than as an advocate for your customer you would want provide them with these options.
4) In response to question 3: I'm sure I will find more, but for now, just this feature.