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Outsourced Lease Program 'OLP"…is The LHPH Solution…that Controls Cash Flow…Collateral…Customer

Why it Makes Sense!

by Ashley D Herndon Director, Co Founder Crossbow Group, Inc.

A New Product – A Proven Company! Crossbow Group works with the nation’s largest provider of

indirect leasing services to credit unions and other lien holders.

23 years in business  65,000 vehicles leased exclusively through credit unions  $2 billion in lease receivables  25,000 vehicles successfully remarketed 

Corporate office located in Southern, California 10 employees with over 100 years combined leasing experience  1/2 of employees have more than 12 years each  Member of National Vehicle Leasing Association  3 employees with CVLE designations through the NVLA 

Why use Outsourced Leasing? 1. Cash Flow 2. Profit 3. Collateral Control 4. Regulatory Relief 5. For the Customer

Comparison: R.I.S.C. or Loan vs Lease Assumptions Loan or R.I.S.C.

Vehicle cost- $ 5,000 Selling Price- $10,000 Sales Tax7% Down Payment- $ 1,000 Interest Rate24% Term36 months n/a n/a n/a


Same Same Same Security Deposit- $1,000 Same Same $395 Acquisition Fee $375 Termination Fee $2000 Residual

Key Differences (at the same payment): Sales Tax Upfront Security Deposit Fee Income Total Profit Amount in the deal

Loan $700.00 $0.00 $0.00 $9,000.11 $4,700.00

Lease $0.00 $1,000.00 $770.00 $10,270.56 $4,000.00

Comparison Summary Lease Benefits not available in Sale 1. Enhanced Cash Flow… • + $700.00 (sales tax NOT paid upfront) 2. Security Deposit… • + $1000.00 3. New Fee Income… • + $770.00 (acquisition plus termination fees) 4. Additional Total Profit… • + $1270.45 5. Less Money In The Deal… • ($700.00)

Why LHPH? Cash Flow • Elimination of Upfront Sales Tax (in most states) • Sales Tax Paid On Monthly Payment • No Loss of Prepaid Sales Tax at Default (in most states) • Collection of Tax-Free Security Deposit

Why ‘OLP’? More Profit • Acquisition Fee (standard with a lease) • Termination Fee (standard with a lease) • Security Deposit (standard with a lease) • Additional Gross At The Same Payment • Increased Profits Due To Cash Flow

Why ‘OLP’? Collateral Control • Repo Friendly (you own the vehicle) • Bankruptcy Friendly (you get the car back) • Security Deposit • Customer has to return the car to the dealer

Why ‘OLP’? Regulatory Relief • Reduced Federal Regulatory Requirements (Reg. M) • Reduced State Regulatory Requirements • Reduced Consumer Disclosures

Why ‘OLP’? For The Customer 1. Shorten the term six months – at the same payment! 2. Drop the payment $40 per mo. – at the same profit! 3. Use the security deposit to put the

customer into a new car sooner.

We Know ‘OLP’ Makes Sense….but,

…does being the “Lessor” make sense for you?

Your Lessor Responsibilities If You do it Yourself •Technology (software) • Lessor Insurance & Insurance Tracking • Legal Lease Expertise • Lease Accounting Expertise • Staff with Lease Expertise • Correct Forms • Sales Tax Administration • Residual Risk Management

A Better Legal Structure “OUTSOURCED Lessor” (our company/opportunity) •You do business the same as you do today and we handle the risks and responsibilities!

A Better Legal Structure

Outsourced Lessor Originator

Lien Holder

How The Leased Vehicle Is Titled

Outsourced Lessor – ‘OLP’ We provide the following services and you continue to do business the same way you do today! •Lease Accounting…………………....LHPH will handle it •Lease Legal Expertise...……………LHPH will handle it •Correct Forms………………………….LHPH will handle it •Sales Taxes Administration…..…..LHPH will handle it •Proper Insurances………………..…..LHPH will handle it •Residual Risk………………………..…..LHPH will handle it

Program Implementation 1. Execute ‘OLP’ Program Agreement

2. Coordinate with Current DMS Provider Or, 3. Install New DMS Lease Provider 4. Training on Process 5. Training Personnel

Blue State indicates Sales Tax is paid on Payment not Up Front!

Thank You Ashley Herndon

Crossbow Group, Inc. 949 279 6062

Outsourced Lease Program & States 011111  
Outsourced Lease Program & States 011111  

Why it Makes Sense! by Ashley D Herndon Director, Co Founder Crossbow Group, Inc.  23 years in business  65,000 vehicles leased exclusivel...