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1. What is POP?
Preferred Options Program (POP) enables your customers
to seee the benefits and savings of leasing instantly. POP is
a web-based program that calculates the finance charge, total
cost, monthly payments, residual value, total interest paid, total
payoff, and other values for leased vehicles. All the numbers
are guaranteed in writing, so you can make the deal with confidence.
2 . Why is leasing with POP preferable to
buying?
Leasing allows you to drive a new vehicle at a
very affordable monthly payment. At the end of the lease term,
you can choose to purchase the vehicle or to lease a new one.
POP makes the process painless by calculating your monthly payment
and savings allowing you to make an educated purchasing decision
on the spot.
3 . Can I get a more expensive car for a lower
payment when
I lease with POP?
Yes! A wonderful option! Live a little.
4 . Can I choose not to buy the car at the
end of the term?
Yes. Buying the car is optional. The buyout amount
is set by the bank and is printed on your lease contract, so the
bank takes the risk rather than the customer. Driving risk-free
is another major advantage of leasing.
5 . If, at the end of the lease term, the
car’s residual value has fallen
below the bank's/lease company's expectations,
who pays the difference?
The bank/lease company does! Remember, its the
bank's expectation not yours. It is your option - not your obligation.
6. If I'm upside down (negative equity) can
I
still start fresh on my next lease agreement?
Absolutely. You can start fresh on your next
POP lease agreement. Another beautiful thing about your
POP lease agreement is that next time your payment actually should
go DOWN. Think of this? When was the last time a dealer actually
told you that your payments could go DOWN.
7 . What advantage does POP give to dealers?
POP allows the customer to feel secure in the transaction,
which creates a good customer-dealer relationship. POP also allows
the dealer to sell a nicer vehicle than he would otherwise be
able to sell, because the payment is now within the customer's
budget.
8 . Can I purchase a maintenance agreement
on a POP lease
(Lube, oil, filter)?
Yes, and it only raises your payments by
about $10 per month.
9 . Is POP better than a standard installment
loan contract?
Yes, because you can easily calculate the POP formul
Since the numbers appear instantly and are stated in your lease
agreement, you won’t have to worry about miscommunications
with the dealer.
10. What if I drive more miles than the lease
company allows?
There is zero mileage charge when you A) book it
out & buy it, B) book it out & sell it, or C) book it
out online and trade it.
11 . At the end of the lease term can I book
out my lease, sell the car,
and keep the profit?
Yes! And you should (you really have zero risk!).
12 . Will the bank finance my residual if
I want to buy the car?
Yes! The bank or leasing company will be more than
happy to finance your residual if you want to buy the car. Financing
your residual keeps the bank from having to store, ship, and sell
the car to a dealer.
13. Lease vs. financing
-- which car would be worth more money
4 years down the road?
Neither would be worth more. A vehicle's value
is its book value, regardless of how you acquired the vehicle.
14 . It sounds too good to be true! What's
the catch?
Leasing is only for customers with good credit.
It's a way for manufacturers to move inventory with residual enhancement
and lower rates, which means more money for you. If you have good
credit, then leasing is by far the best way to buy a car.
15. If I took both the rebate & lease
with POP, is that smart?
Not only is it smart, but you actually drive out
from the dealership in a much better equity position & a much
lower payment. Just do the math using the POP form. The answer
is right in front of you.
16. Who sets the residual amounts for
leased vehicles?
Automotive Lease Guide of Santa Barbara, California
publishes the industry guidelines on residual values. All banks
or lease companies set their residual values on what their own
calculations and factors to indicate what the car's value will
be.
17. If I were to Finance the vehicle I would
only have to make a payment
for 6 years and with a lease
I have a payment for 7 years. Don’t I end
up paying more that way?
No, as you can see with the Preferred Options
Program you have gain substantial savings by using this method.
T0 better illustrate the point even further if you were to take
the total amount that you have paid for the vehicle by leasing
and financing the residual first and dividing that by the total
number of months you will see an a average monthly payment that
is still lower still than if you had financed the car with a standard
retail installment loan. Remember also had you financed the car
for same numbers of months as you have with the Preferred Option
Program you interest rate would have been even higher. Remember
the longer the term the higher the interest rate on a standard
retail installment loan
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