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LEASING AS SALES SUPPORT IN AUTOMOTIVE DISTRIBUTION

LEASING AS SALES SUPPORT IN AUTOMOTIVE DISTRIBUTION. A.L.B. Conference Leasing 19th October 2005. CAR LEASING : Market trend. A quite stable market. Research of outfinancing is confirmed Development of fleet solutions appears. Source APIA. Leasing : PC / LCV.

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LEASING AS SALES SUPPORT IN AUTOMOTIVE DISTRIBUTION

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  1. LEASING AS SALES SUPPORT IN AUTOMOTIVE DISTRIBUTION A.L.B. Conference Leasing 19th October 2005

  2. CAR LEASING : Market trend • A quite stable market. • Research of outfinancing is confirmed • Development of fleet solutions appears. Source APIA

  3. Leasing : PC / LCV • Increase of leasing in LCV  strong business development • New solutions for companies investments in order to deal better with their increase of activity. • Producers and dealers had to adapt their distribution and promotion policy

  4. IPSO • Car dealer since 1996. • More than 200 employees in the automotive department. • Over 6.500 cars sold in 2005. • More than 2.500 monthly entries in workshop. • Around 50% sales made with companies • 38% of total sales with leasing. • Support of R.C.I.

  5. IPSO’s Sales

  6. Who buys with leasing ? • Huge decline of leasing for private people : -60% over the last 3 years • + 65% increase in leasing signed with companies •  Leasing is a clear way for dealers to promote sales and provide new professional solutions

  7. Customer’s advantages • Deductible expenses • Major financial ressources remain free for other investments. • Goods bought with leasing can bring more profit used then to pay monthly rates. • Fixed rates ensure a better budget with cash flow control • Credit lines remain available.

  8. Our customer’s demands • More flexibility  to adapt the offer to each company’s needs • Financial leasing • Financial leasing + Maintenance contract (RENAULT Fleet ***** , Ipso Maintenance Contract) • Operationnal leasing with local or national coverage.

  9. IPSO SERVICE + : how to create new solution for customers. • Tripartite agreement based on an operational leasing : • Package : Sales / after sales by financing both cars and maintenance over a period/mileage clearly established on a local or national level. • Definition of the product • Definition of operating costs together with the user according to his activity • Rate definition • Our experience : • ROMTELECOM : 900 cars • Bergerat Monnoyeur Romania : 20 cars • Ziua : 10 cars

  10. Example • LOGAN 1.4 MPI : 6.492 euros without VAT • 36 months operationnal leasing • 75.000 km • All maintenance costs included (one set of winter tires + full assistance + ITP)

  11. Customer’s gain • Total costs control for the whole period. • Administrative costs reduction • Total transparancy of fleet maintenance. • To use all benefits of the car fleet with the warranty of renewing it at the end of the contract within the best conditions.

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