This paper discusses the factors that can be attributed to the growing popularity of leasing, the advantages of having a well-designed customer experience lease strategy and how this can help support long-term customer retention and loyalty and serve as a springboard to capture additional market share as well as help to offset potential regulatory risk issues.
Automobile leasing is on the rise. Several factors can be attributed to the growing popularity of leasing, the most common of which is that it allows consumers to purchase a vehicle with more features and with greater constraints on consumers’ discretionary income, the benefits of leasing make sense.Vehicles are also becoming more technologically sophisticated and since automobile technology developments are only likely to accelerate, the leasing option will continue to provide consumers with the most appealing means to drive a new car, more frequently, with leading-edge technology.The decision to lease a car also adds an additional level of complexity to the consumer’s buying experience in that many consumers are not as familiar with the leasing process and standard leasing nomenclature. Too many people find the lease transaction a mystery when compared to an outright purchase and that, if not properly managed, could result in unnecessary customer anxiety and lead to potential downstream dissatisfaction with the manufacturer, dealer or lender. The customer experience implications are further magnified by the lens of regulatory scrutiny focused on the industry from a fair lending and customer fairness perspective. Banks and captive auto finance companies must ensure they have a well-designed customer experience lease strategy throughout the entire customer journey.