The average transaction cost of an automobile is rising every year, so consumers are trying to ease that financial outlay and turning towards leasing. In fact, 34% of all retail auto sales in 2018 were leases. Millennials in particular prefer leases. Nearly one third of millennials chose leasing over buying in 2016, making up 12% of all leases in the U.S. No longer is leasing only for luxury brands. Full-size pickup trucks, with all the bells and whistles, can cost up to $75,000, which is prompting more consumers to look at options to bring down their monthly payment. Leasing also offers advantages to manufacturers, as the typically shorter terms of a lease versus an auto loan (which can stretch up 72 months) generates more certified pre-owned vehicles, which then can be sold at a premium, creating new revenue streams. Furthermore, as leasing continues to increase in popularity, so do vehicle subscription services. To ride the wave of auto-leasing, the Allegro Lending Suite™ has upgraded its powerful new leasing feature so you can take advantage of this consumer trend.
The U.S. economy has been strong for a long time now. Indeed, it is about to break the record for the longest economic expansion in history. If history has taught lenders anything, it’s that bad loans are made at the end of a positive cycle. Leasing can provide a buffer against a possible downturn, because GAP protections for the lender are built in.
ILT has a long and successful history with leasing features, since its DILLS™ product debuted in 2001. As Will McGregor, President, CEO of ILT put it, “When the Allegro Lending Suite™ replaced DILLS™ we made sure it would be the best experience for both lenders and dealers. We took great care in upgrading the Allegro Lending Suite’s™ lease feature to enhance its capabilities on validations and compliance.” The Allegro™ leasing tools increase efficiencies by helping credit unions and small banks configure such details as the initial capitalized cost, and cap cost additions and reductions, leading to a true adjusted cap cost. “Our competitors attempt to pound a square peg of a lease into the round hole that is auto lending. Not everyone understands leasing, and how it is different from lending, but we do.” Says Pete Vehko, Vice President, Business Development.
Users of indirect lending and leasing technology will find the Allegro Lending Suite™ offers an easy point of entry. It’s integrated with RouteOne and Dealertrack, and manages balloon loans as well – another loan type that is similar to, but is not, a lease. There’s more detail in the structure, which enables lenders to document the transactions better than other available technologies. For example, the Allegro Lending Suite™ allows tracking of acquisition fees. It also offers “Deal Maestro,” a calculator that assists lenders in creating “what if” scenarios where one is able to create a counter-offer to a dealer on the fly.
Call ILT today to arrange a demonstration of how the Allegro Lending Suite™ can help you start or strengthen your leasing program.