Financial Sales Manager, KCCAllison Ivanovitz

KCC Leasing

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Lease Opportunity

Who is a Lease Customer?

Lease Mechanics

Example Structures

Dealer Best Practices

TABLE OF CONTENTS

Leasing üCloses SalesüIncreases Market ShareüIncreases Profits

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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KCC Lease Originations

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

“Qualification is Key”

Success with Leasing

1. Train Staff

2. Advertise and Promote

3. Qualify Customer

4. Close the Deal

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

How Leasing Works

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

“SEEK FIRST TO UNDERSTAND, THEN TO BE UNDERSTOOD…”

DR. STEPHEN R. COVEY

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

KCC Leasing Drives Market Share

THANK YOU