Carleton’s Tim Yalich urges dealers and finance sources to face the “critical reality” of the complexity, challenges and profitability risk that underlies lease payment calculations in “The Precision Trap: Why Lease Payment Accuracy Is the Highest Stake in Auto,” his latest contribution to DealerELITE.

As Yalich explains, even a $1 error in a calculated lease payment — multiplied across the duration of the term — affects any number of interconnected variables, including taxes and fees as well as depreciation, residual value and more.

“When a lease payment is solved improperly, it can affect the integrity of the deal,” he writes. “However, as lease penetration continues to show higher numbers compared with recent years, lenders and dealers must recognize the necessity of having technology robust enough to handle the sheer computational volume and regulatory nuance this growth demands.”

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