Automotive News Canada - June 2017 - v2 - 15

15

* JUNE 2017

Subventing is a new growth
tactic for Hyundai Credit
Flow of lease
returns expected
to pick up and be
consistent in 2018
By MICHAEL GOETZ
TORONTO CORRESPONDENT

RETAIL AND SUBVENTED
loan products will be key elements in George Steinsky's
plan to grow the reach of
Hyundai Credit Canada Inc.
(HCCA).
Steinsky, president of
HCCA, wants to expand
Hyundai's
leasing
business
by building up its
retail loan
portfolio,
particularly with
subvented loan products that are not
yet in the picture. A subvented lease is supported with
manufacturer marketing dollars to help provide a lower
monthly payment.
Steinsky said he wants to
grow leasing but only in a
manner that makes sense for
the automakers (Hyundai,
Kia, Genesis), dealers, and
residual values.
"We're trying to grow ... at
a pace that allows our OEMs
to manage their incentive
[budgets] going forward."
Currently, lease returns
are few,
Steinsky
said, but by
next year
there will be
significant
and consistent flow of
them. He
said that
could creGeorge
ate momenSteinsky:
tum for
Growth is at
lease sales,
a pace that
as dealers
allows OEMs
learn about
to manage
and levertheir incenage leastive budgets.
ing's built-in
(PHOTO: HCCA)
loyalty and
prime used-vehicle sourcing
opportunities created when
customers return to the dealership at lease end to re-lease,
buy out the lease or end it. If
the customer does not buy out
the lease, it creates an opportunity for the dealer to cherry
pick returned units for their
own used-car inventory.

LEASE RETURN INFLUX
With Hyundai and Kia
dealers sharing "a history of
not having a captive (owned
by Hyundai) lease company,"
Steinsky said both brands
need to raise their respective lease-return games over
the next year or so. HCCA is
already prepping and training dealers to have a plan in
place to deal with the lease

return influx.
Inventory or floorplan
financing is also an objective. HCCA is currently in
pilot with such a commercial plan at two Hyundai
and two Kia dealerships.
HCCA came to life in
May of 2014 as a modest
operation, a base model
with no options.
"We did our first lease

in January 2015, so we
stood up the business very
quickly," Steinsky said.
In those initial years the
emphasis was to get leasing and get leasing quickly. "But our OEM partners at Hyundai, Kia and
Genesis and their respective dealers are wanting,
expecting and deserving
more capability." - ANC

Range Rover Velar Borrows from Jag F-Pace
LAND ROVER'S NEW MIDsize Velar utility vehicle will
arrive at dealerships in Canada
this summer, slotted between
the smaller Evoque and the
larger Sport
The Velar shares its all-aluminum platform and powertrains with the Jaguar F-Pace

and comes with a base 2.0-litre
four-cylinder turbo-diesel.
Optional is a 380-horsepower
supercharged V-6 engine.
Entry-level Velar S pricing starts at $62,000. An exclusive First Edition, limited to 50
units in Canada, is available at
$95,000.

THINK INNOVATION, DURABILITY, QUALITY
("$!&""&҃&$$(ĺ$
	
"!(	!$""$! &$$!ĺ

TAILORED
WORK CENTERS
FOR YOUR
DEALERSHIP

Try our bay design tool at
rousseaumetal.com/baydesign

Complete and comprehensive
storage solutions

20 standard colors along with
stainless steel panel engraving

rousseau-automotive.com
http://www.rousseaumetal.com/baydesign http://www.rousseau-automotive.com
Table of Contents for the Digital Edition of Automotive News Canada - June 2017 - v2
