small business loan servicing solutions

CHOOSING A VEHICLE LEASE MANAGEMENT SERVICE PROVIDER

The defi Team defi INSIGHT, Servicing Systems

 

Choosing a Vehicle Lease Management Service Provider

Businesses in all industries are delegating greater portions of their IT infrastructure and service management to cloud-based service providers. The proven CapEx and OpEx advantages of outsourcing have accelerated cloud adoption. The underlying rationale: Outsourcing lets businesses focus on core strengths and let specialists worry about the rest. 

 

In particular, auto finance organizations that are currently (re-)evaluating their vehicle lease management processes should consider outsourcing. A few key questions will help guide the decision.

Why Consider A Lease Management Service Provider?

A vehicle lease management service provider has the experience and expertise to manage the lease cycle far more efficiently and cost-effectively, while providing a higher quality of care. With well-developed processes, innovative technology, and employees solely focused on all aspects of lease management, they can easily become a tightly-integrated extension of your business.

Evaluating A Lease Management Service Provider

As you begin the process of evaluating lease management service providers, use this concise list of attributes and capabilities to assess their qualifications.

#1 Well-Established in the Industry

  • How many years of experience in providing vehicle lease management service? 
  • What is the average tenure of employees? 
  • How many employees have prior experience in associated areas of the industry such as financial, legal, customer service, and risk management? 
  • What statistics and metrics can they provide to assure you they have the capacity to meet your needs?

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#2 Covers All Phases of a Lease

Establishing and maintaining an excellent lessee relationship requires consistent interactions throughout the lease. Look for a lease management service provider that has developed and refined best practices across all phases of the lease.


At the beginning of the lease, servicing professionals, ideally conversing in the native language of the lessee, set the tone for success via proactive communications to: 

 

  • Review the terms of the lease agreement and clarify any areas that may cause confusion. 
  • Clearly explain the obligations regarding vehicle wear and tear and excessive mileage.
  • Inform the lessee of the variety of ways to manage lease payments—AFT, mobile, walk-in, and postal payment options.
  • Offer multiple channels of contacting service representatives—phone, email, chat, and text.

#3 Ongoing Interactions

The lease management service provider should use proven retention strategies. They should build trust through multi-channel nurturing and by offering focused guidance to mitigate potential risk. Interactions and support during the life of the lease should include:

 

  • Portfolio analysis that guides outreach campaigns tied to key stages of the leasing lifecycle to encourage lessee retention
  • Full range of cash management services including reconciliation and cash disbursements, account payoff processing, payment processing,  tax administration, and tolls and citation processing
  • Regular customer satisfaction surveys to assess customers’ support experience and identify areas for improvement

#4 Minimized Delinquencies and Defaults

The provider should use the latest in analytics and AI technologies to identify and mitigate potential problems. They should also have the skills to resolve those problems when they arise. This can take several forms:

 

  • Artificial Intelligence (AI) analyzes lessee attributes and payments to develop models that predict potential problems in meeting lease agreements
  • Proactive outbound collection campaigns reduce defaults by confirming promises to pay or offering payment plans to accommodate the lessee’s financial situation
  • Full range of services to manage delinquencies and defaults, including fraud notification and investigation, skip tracing, bankruptcy management, and repossession
  • Fraud investigation and notification to resolve these issues and minimize any negative financial impact

#5 Lease Maturity

Mature leases are opportunities. All of the proactive and positive interactions occurring during the lease cycle help build trust. End-of-term campaign management is a chance to convert trust into loyalty. Quality lease management service providers maximize the opportunity by:

 

  • Communicating with lessees six to twelve months prior to lease-end to discuss the pros and cons of each option—return the vehicle, extend the lease, begin a new lease, or purchase the vehicle
  • Guiding lessees through the end of their lease and the vehicle inspection process to avoid the surprise of unexpected fees or payments
  • Providing staffing to efficiently manage the volume of off-leases to meet the required service level agreements

#6 Options for Making the Transition to a Lease Management Service

An experienced vehicle lease management service provider knows that making the transition to an outsourced service requires a carefully planned and executed process. Look for a service provider that offers options for successfully making the transition, including single-lease, end-of-term, or any of a comprehensive set of services to meet your needs. 

 

An experienced lease management service provider lets you focus on your core competencies while they apply their experience, expertise, technology, and best practices to provide outstanding service to customers throughout the lease cycle.

 

 

Getting Started

defi SOLUTIONS provides configurable loan origination systems, lease management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you’re looking for a more efficient and economical way to manage leases begin by contacting our team today.

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