Leases accounted for about 30% of the US market for new cars over the past two years, according to Statista. With leases being a significant portion of the new vehicle market, dealers and lenders are looking for the most efficient ways to manage lease services. Many have reached the conclusion that an auto lease servicing provider is best suited to handle post-funding lease management.
Reevaluating Your Auto Lease Servicing Strategy?
If you are reevaluating your auto lease management strategy, you’ll find that automation has brought a greater degree of efficiency to nearly all phases of the leasing cycle, benefitting both dealers and lessees. When outsourcing your lease management responsibilities, evaluate auto leasing service providers against this list of functional must-haves that include both technology and skills. We’ve used the lease lifecycle as a framework for discussing the required capabilities.
Post-funding is the first and most important opportunity to establish a positive and potentially lasting business relationship.
- Multi-language support: with an increasingly international US population, a customer service agent who fluently speaks the lessee’s language makes an extremely positive first impression and can continue to clarify or resolve any questions throughout the life of the lease.
- Proactive outreach and education: explain the expectations regarding the lease and confirm that all information is current and accurate. Ensure the lessee fully understands obligations such as payment schedule, potential wear, tear, and mileage charges, and all end-of-lease options. Education at this stage helps eliminate potential problems later in the lease cycle.
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On-Going Interactions and Support
Interactions with the lessee during the life of the lease can vary greatly. Improvements in customer relationship management, accounting, and multichannel communications have streamlined many of the interactions. With the ideal combination of capabilities and customer service skills a leasing service should be able to:
- Respond to inquiries across all relevant channels—post, email, phone, text, and webchat. Maintain an accurate record of all communications and inquiry resolutions.
- Securely manage paper and electronic titles in all jurisdictions to help ensure information is current and accurate, including title corrections, follow-ups, transfers, state substitutions, and releases.
- Process return mail to quickly locate hard-to-find recipients, validate correct addresses, and update billing records to reduce postage and mail production costs.
- Manage all types of accounting transactions, including cash management, payments, payoffs, sales and property tax filing with the appropriate authorities, and outstanding toll and violation processing. The provider should maintain collection licenses in all 50 states.
- Proactive outbound collection campaigns to reduce default loss by securing promises to pay.
- Bankruptcy and repossession management services including fraud investigation and notification services to bring them to a successful close.
The software that enables all of these processes should support a “single view” of the lessee to ensure that all transactions, all communications, and all relevant documentation are secure, yet available to customer service agents to ensure consistent, streamlined interactions.
Lease Maturity Is a Business Opportunity
End-of-lease is an opportunity to continue business with a lease extension, buy-out, new lease, or potentially a loan on a new or used vehicle. A good lease servicing provider works to maximize the opportunity by informing the lessee of the advantages of each option and expertly guiding them through the various options.
Automated tools capture key vehicle information like location, mileage, and other important asset details. Final billing statements sent automatically by post or email provide a complete summary of transactions and any outstanding payments to avoid any end-of-lease surprises. Flexible workflows ensure the proper information is provided and tasks are completed in the proper sequence to provide a flawless process for vehicle returns, lease extensions, or vehicle purchases.
Assess the Quality of Lease Servicing
Look for an auto lease servicing provider who has attained ISO 9001:2015 quality management certification. An auto lease servicing provider with this level of care will also conduct satisfaction surveys to assess the customer experience throughout the life of the lease and ensure that customer expectations have been met, if not exceeded. Regular surveys provide valuable insight for continuous process improvement that benefits both dealers and lessees.
A careful assessment of your current auto lease servicing capabilities against those provided by an experienced outsourcing provider can reveal a gap. A more cost-efficient approach that delivers a better quality of auto lease servicing can have a positive financial impact on your operations and improve customer loyalty.
defi SOLUTIONS provides configurable loan origination systems, auto lease 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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