Last month, I watched two salespeople handle nearly identical customers. The first salesman spent twenty minutes explaining lease terms and finance options while the customer’s eyes glazed over. The second salesperson put two payment worksheets side by side and let the numbers tell the story. Guess which one sold a new car that day?
- Present lease and finance payments together every single time – don’t ask customers to choose before they see the numbers
- Match your pitch to what customers actually care about: tech lovers want the latest features, families want long-term value
- Train your team to get excited about both options instead of treating leasing like a consolation prize
Stop Asking How They Want to Pay
Here’s what I see happening on dealer lots every day: a customer walks in, and the first question out of the salesperson’s mouth is “Are you looking to lease or finance?” That’s backwards thinking.
When you ask that question, you’re telling the customer they’re the expert. But they’re not – you are. Most people don’t understand the real differences between leasing and financing. They just know they want lower payments or they heard something from their brother-in-law about building equity.
Try this instead: show them both options for every car they’re considering. Put a lease payment and a finance payment right next to each other. When someone sees they can drive a $50,000 truck for $450 a month leased versus $720 financed, it changes everything.
I know dealers who’ve increased their closing rate by 15% just by making this one change. The numbers speak louder than any sales pitch.
Know What Your Customer Really Wants
You’ve got to read people. A 28-year-old tech worker cares about different things than a 45-year-old mom with three kids.
The tech worker probably wants the newest infotainment system, the latest safety features, and doesn’t want to deal with maintenance headaches. That screams leasing. You tell them, “Every three years, you get the newest technology. No more feeling like your car is outdated when the new model comes out.”
The mom with three kids? She’s thinking about car seats, soccer practice, and keeping this vehicle for eight years. She wants to own something reliable. You focus on building equity, no mileage limits, and not worrying about wear and tear from the kids.
Business owners get excited about tax benefits. High-mileage drivers need to hear about no restrictions. Luxury car buyers want to always drive the premium models without the depreciation hit.
Stop using the same pitch for everyone. It doesn’t work.
The Leasing Conversation That Works
Most salespeople hate talking about leasing. They act like it’s somehow inferior to financing. That’s a huge mistake because leasing customers often have higher incomes and upgrade more frequently.
Here’s how you sell leasing: focus on what they get, not what they don’t own.
“You’re always driving something under warranty. No surprise repair bills. When something better comes out in three years, you’re not stuck with old technology. And look at this payment difference.”
Point out that they’re avoiding the steepest depreciation years. A $40,000 car loses about $8,000 in value the first year alone. With leasing, that’s not their problem.
For electric vehicles, leasing makes even more sense. The technology is changing so fast that nobody wants to own a five-year-old EV when the new ones have twice the range and charge twice as fast.
When Financing Makes More Sense
Some customers are natural financing candidates, and you need to recognize them quickly.
Anyone who drives more than 15,000 miles a year should probably finance. People who keep cars for ten years. Customers who want to modify their vehicles. Anyone who just likes the idea of owning something outright.
Your financing pitch should hit these points: “Once it’s paid off, no more monthly payments. Drive it as long as you want. No mileage restrictions. Make it yours with whatever modifications you want.”
Don’t forget to mention the equity angle, but be realistic about it. Cars aren’t real estate – they depreciate. But after five or six years, they still have some value that belongs to the customer.
Handle the Common Pushback
You’ll hear the same objections every week. Here’s how I handle them:
“I don’t want to always have a car payment.” That’s a fair point. Explain that with financing, they’ll eventually own it free and clear. With leasing, they’re choosing to always drive newer, more reliable vehicles. Both approaches work – it depends on what matters most to them.
“Leasing is just throwing money away.” Push back gently here. “You’re not throwing money away any more than someone who trades in every three years. Actually, you’re probably coming out ahead because you’re not eating the depreciation.”
“What if I damage the car?” Be honest about wear and tear policies, but don’t make it sound scary. Normal wear is covered. They’re not going to get charged for every tiny scratch.
Target the Right People
Your marketing should change based on who you’re talking to. Young professionals respond to different messages than empty nesters.
For millennials and Gen Z, emphasize the tech angle and the flexibility. They grew up with smartphones and expect their cars to keep up with technology too.
Families care about safety, space, and getting good value for their money. They might lease a premium SUV with better safety ratings that they couldn’t afford to buy.
Business owners want to hear about tax advantages. Lease payments are often fully deductible as a business expense.
Retirees usually prefer the simplicity of ownership. They often have the cash flow for higher payments and like not having restrictions.
Train Your Team Right
Your salespeople need to understand both options inside and out. Too many of them act like leasing is something they have to apologize for.
Get them excited about repeat customers. Lease customers come back every few years, and they’re often easier to work with because they already trust you.
Role-play different scenarios. Practice the payment presentations. Make sure everyone can explain the benefits of both options without stumbling over the words.
Give them the tools they need. Good payment calculators, clear worksheets, and talking points that actually make sense to customers.
The Electric Vehicle Game Changer
Electric vehicles are changing how people think about leasing versus buying. The technology is moving so fast that many customers prefer leasing to avoid getting stuck with outdated batteries or charging systems.
When you’re selling EVs, leasing often makes the most sense. Federal tax credits get passed through immediately on leases, making the monthly payments even more attractive.
Plus, charging infrastructure is still evolving. Someone who buys an EV today might find it’s obsolete in five years when new charging standards become common.
Make It Simple
At the end of the day, customers want to drive home in a car they can afford and feel good about. Your job is to show them the clearest path to get there.
Present both options clearly. Match the right solution to the right customer. Don’t overthink it or oversell it. Let the benefits speak for themselves.
When you do this consistently, you’ll close more deals, have happier customers, and build a business that people want to come back to.
Stop asking customers what they want before you show them what’s possible. That’s the difference between taking orders and actually selling cars.
