Blog post

December 5, 2019

How to improve your operational and financial leasing operations in automotive retail

Operational and financial leasing are two very important – and extensive – aspects of a car dealership’s business operations. At the same time, they are not without their particularities and consume lots of time in order to be managed properly. How could a dealership management system with a leasing module help? Let’s take a look.

We’ll begin by stating the obvious – operational and financial leases are two different modes of leasing. The former is generally treated like renting, while the latter is more of a loan. What that means is that operational leasing is often how businesses choose to set up company cars, while financial leases are usually chosen by private individuals looking to purchase a car for themselves. This leads to some small, but crucial differences in the software tools necessary to manage operational and financial leases.

Key aspects of leasing functionalities

This is why it’s important for your automotive retail solution to cover not just standard CRM capabilities, but custom-made ones that were designed specifically for operational and financial leasing operations. This gives you an opportunity to be flexible when it comes to what you can offer your client, and thus increase satisfaction rates. You could also fill in important information about leasing plans such as mileage, tires, installments, interest and others.

A dedicated leasing module would give your company more opportunities to automate daily tasks that would usually take away precious time. For example, changes would be made automatically when the receiver of the lease or the lessor change. That way there won’t have to be someone who has to go through all documents and contracts in order to change names manually.

Technology is here to help us save time and help employees execute their daily activities with less efforts and minimal mistakes. An automotive retail system should do the hard work, such as creating and calculating monthly payments based on a residual value matrix. It is also important to consider if the settings could be fine-tuned according to the specific needs of your business. This is important in order for the dealer to be able to define packages based on brand, car model, engine, period, regular, irregular services and more.

There are many things to look for when choosing an automotive retail solution for efficient business management. If leases are an important part of your business, it’s worth exploring the capabilities of the one you’ve set your eye on. Furthermore, you won’t lose anything if you ask the provider how they can make their solution fit your specific needs. And while you’re here, check out Dealerbox’s own leasing module.

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