Charge-offs are never the ideal outcome in any contract agreement, but unfortunately, they do happen. When a vehicle is leased, it transitions from being categorized as an asset to a leased asset, which carries different implications in the event of a charge-off. So, what does it mean when a leased vehicle becomes a charge-off, and how does it impact your dealership's financials?

In this video, we break down the process and explain the key differences between traditional asset charge-offs and those involving leased assets. Understanding these distinctions is crucial for effectively managing your leasing portfolio and minimizing financial risks when charge-offs occur.

Check out the video below to learn more about handling charge-offs in a leasing program and how to best protect your dealership’s bottom line.