KCC Leasing
Transcript of KCC Leasing
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Lease Opportunity
Who is a Lease Customer?
Lease Mechanics
Example Structures
Dealer Best Practices
TABLE OF CONTENTS
CE Finance and Lease MarketShare of Financed and Leased Units
* EDA Data Includes Mini-Ex, SSL, CTL. Excludes Rental and Governmental.* For Comparison Purposes Only. Actual Market Share may Differ.
Brand Total EDA Units
Share of Total EDA
EDA LeaseUnits
Lease Mix %
Share of EDA Lease
Total
Total 133,279 14,077 10.5%Bobcat 30,817 23% 8018 26% 57%Kubota 30,157 23% 558 2% 4%Cat 29,919 22% 550 2% 4%Deere 20,067 15% 2493 12.4% 18%CNH 9,008 7% 369 4% %
Figure 1. US Market 2019/2020 EDA Data
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Market Share OpportunityPart of Your Growth Plans
• 100hp+ Tractors
• Construction
• Municipalities
• Faster Sales Cycle
• New Customers
• Life Cycle Selling
Meet Customer Needs and Generate Incremental Sales
Lease Customer
“KCC makes leasing easy.”Erik Kobus / Kubota Dealer
Plumber§ Rentals don’t work for him
• Price is too high
• Logistics are cumbersome
§ Needs dependable machine under warranty
• Uptime is critical
§ Doesn’t want to manage assets
• No trade in hassle
• No time to spend selling equipment
“KCC Leasing helped us close a multiple tractor deal for a large national corporate
customer”Will Jenkel / Kubota Dealer Salesperson
Lease Customer
Nursery
§ Cash flow is important
• Needs the lowest payment
• Does not want a down payment
§ Prefers Shorter Commitment
• Wants the latest technology
• Flexibility to quickly adapt to business needs
Lease Steps
1. Quote is Generated From Showroom
2. Customer Agrees to Lease Terms
3. Customer Signs Commercial Application
4. Lease is Approved
5. Customer Signs Lease
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Leasing increases market share and drives parts and service sales.
KCC Lease
Customer Makes Payments During Lease
At Lease End, the Lessee Can…
ü Trade for new Kubota equipment
ü Purchase for Fixed Purchase Price
ü Walk Away
At Lease End, the Dealer…
ü Can (but is not required to) purchase the equipment for inventory
93%KCC Overall Credit approval
Rate
M7 132D w/Loader$985 Monthly Lease Payment
- or-$11,687 Annual Payment
36 month
$2,100 60 Month Loan Payment$5,000 Monthly Rental Payment
KX040 Excavator
$922 Monthly Lease Payment
$1,041 60 Month Loan Payment
$2,500 Monthly Rental Payment
Dealer Best Practices
• Dealer Web Page Dedicated to Lease Offers
• All Salespeople Armed With Lease Payments on Current Inventory
• Direct Mailers Targeting Lease Customers with Low Lease Payment Offers
Aaron SkaggsColeman Equipment
Cody ScottGreat Plains Kubota
Travis RossCoia Equipment
My salesmen see the value in leasing to create more touch points with our customers and repeat sales over the years.
Mark MorrisonTerry Implement
In my territory I have to assume my customers are getting lease quotes from the competition. If I’m not up to speed on leasing I lose deals.
After learning how to quote a lease, the very next day we ended up quoting 3 different customers. We realized we had been missing opportunities!
KCC bringing leasing in-house was a huge benefit to our sales staff. Easy quoting in Showroom sold multiple M7s in December.
Dealer Testimonials
Confusion equals no sale
Nothing is sold until its paid for.
SummaryPromote Leasing as a Tool for Market Share Growth
Keep it SimplePromote Simplicity and Familiarity of KCC Leasing
Challenge Dealers to be Knowledgeable About Leasing Adopt Best Practices
ü Use Your FSM as a Training Resource
ü Pick Two High Opportunity Target Dealers
Encourage Dealers to Advertise and Promote Leasing
Print Ads Direct Mail
Internet Texts
Kubotalink BulletinsQuarterly Lease Programs
2021 KCC Dealer Handbook
KCC Lease Program Guide Coming Soon
Lease Enhancements Bulletin (RFB-2020-E02) - Showroom Updates and KOARS Assistance
KCC Quick LookMonthly Articles with Helpful Tips and Updates
Regional FSMJohn Ellison CE Kevin Freidheim SE Jamie Spellman WE
Myron Banta MW Allison Ivanovitz NO
Resources