LEASING AS SALES SUPPORT IN AUTOMOTIVE DISTRIBUTION

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LEASING AS SALES SUPPORT IN AUTOMOTIVE
DISTRIBUTION

• A.L.B. Conference Leasing
• 19th October 2005

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CAR LEASING Market trend

• A quite stable market.
• Research of outfinancing is confirmed
• Development of fleet solutions appears.

Source APIA
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Leasing PC / LCV

• Increase of leasing in LCV ? strong business
  development
• New solutions for companies investments in order
  to deal better with their increase of activity.
• Producers and dealers had to adapt their
  distribution and promotion policy

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IPSO

• Car dealer since 1996.
• More than 200 employees in the automotive
  department.
• Over 6.500 cars sold in 2005.
• More than 2.500 monthly entries in workshop.
• Around 50 sales made with companies
• 38 of total sales with leasing.
• Support of R.C.I.

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IPSOs Sales
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Who buys with leasing ?

• Huge decline of leasing for private people -60
  over the last 3 years
• 65 increase in leasing signed with companies
• ? Leasing is a clear way for dealers to promote
  sales and provide new professional solutions

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Customers advantages

• Deductible expenses
• Major financial ressources remain free for other
  investments.
• Goods bought with leasing can bring more profit
  used then to pay monthly rates.
• Fixed rates ensure a better budget with cash flow
  control
• Credit lines remain available.

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Our customers demands

• More flexibility
• ? to adapt the offer to each companys needs
• Financial leasing
• Financial leasing Maintenance contract
  (RENAULT Fleet , Ipso Maintenance Contract)
• Operationnal leasing with local or national
  coverage.

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IPSO SERVICE how to create new solution for
customers.

• Tripartite agreement based on an operational
  leasing
• Package Sales / after sales by financing both
  cars and maintenance over a period/mileage
  clearly established on a local or national level.
  
• Definition of the product
• Definition of operating costs together with the
  user according to his activity
• Rate definition
• Our experience
• ROMTELECOM 900 cars
• Bergerat Monnoyeur Romania 20 cars
• Ziua 10 cars

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Example

• LOGAN 1.4 MPI 6.492 euros without VAT
• 36 months operationnal leasing
• 75.000 km
• All maintenance costs included (one set of
  winter tires full assistance ITP)

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Customers gain

• Total costs control for the whole period.
• Administrative costs reduction
• Total transparancy of fleet maintenance.
• To use all benefits of the car fleet with the
  warranty of renewing it at the end of the
  contract within the best conditions.