Northland's Ren'T'Own® and Lease'T'Own® programs are NOT illegal. The programs follow the leasing laws within each state which is why we don't use a one-size-fits-all contract. The Consumer Lease Agreements are written in accordance with each state's laws to ensure that dealers are in compliance. Northland will stand behind the contracts and defend them at our expense if they should ever be challenged.
A CUSTOMER CAN RETURN THE CAR AT ANY TIME
Our unique Consumer Lease Agreements contain a clause allowing the customer to return the vehicle at any time, for any reason. This clause makes Ren'T'Own® and Lease'T'Own® a win-win situation for both the dealer and the customer. A returned car is good for the dealer because you can re-lease it to the next customer and continue the payment stream. The return clause is good for the customer because it gives them flexibility without the chance of further damage to their credit. Contact us for more information on "rolling" the vehicles.
REN'T'OWN® & LEASE'T'OWN® ARE DIFFERENT PROGRAMS
Ren'T'Own® and Lease'T'Own® are simply marketing terms describing a profitable business model offered by Northland. They are terms that your customers will quickly recognize and be comfortable with. We use these terms interchangeably in our advertising and marketing material. Some states such as Iowa, Ohio, and New Jersey require that we use only Lease'T'Own® when referring to our program and we're happy to comply!
REN'T'OWN® IS NO DIFFERENT THAN BHPH
This couldn't be farther from the truth! With Ren'T'Own®, the dealer remains titled owner of the vehicle throughout the term of the lease agreement or until the customer chooses to act on the purchase option. Because you are the owner of the vehicle, you have leverage that BHPH dealers don't have. Ren'T'Own® provides you with protection against customer bankruptcies, costly repossessions, and tax burdens.
REN'T'OWN WILL TARNISH MY IMAGE
Ren'T'Own® and Lease'T'Own® will make you the HERO in your community! You've been able to help these customers when no one else could. You've given them the opportunity to move forward in getting their life back on track. With a RTO®/LTO® vehicle they can now get to work, run errands, transport their kids to and from activities, etc... Word of mouth advertising from these grateful and satisfied customers will quickly spread around town!
I CAN DO REN'T'OWN® ON MY OWN
Many dealers have tried and many dealers have been fined and failed. Why risk it on your own when Northland has the program that's been used successfully by hundreds of dealers for the last 25+ years?Northland stands behind the contracts and will defend it in court if needed. Northland also has the internal resources exerienced with insurance claims, bankruptcies, state leasing statutes, etc... These resources are available at no additional cost. Northland's motto is: "HELPING DEALERS SUCCEED"!
I DON'T NEED THE CONTINGENT LIABILITY INSURANCE
Contingent Liability insurance is a critical piece of the Ren'T'Own®/Lease'T'Own® program. Each of your RTO®/LTO® customers are required to furnish primary insurance coverage but that primary insurance isn't enough to protect you. Keep in mind that the primary insurance is intended to provide physical damage coverage for the vehicle and liabliity protection for the driver. IT DOES NOT cover a legal award for damages brought against the dealer as owner of the vehicle.
For example, your RTO®/LTO® customer causes an accident in which someone dies and there is a million dollars in damages. The primary policy has a $50,000 limit. Who pays the rest? As titled owner of the vehicle, they will go after YOU!
In order to protect you, Northland offers Contingent Liablility Insurance coverage at affordable premiums. This coverage is intended to protect your interests from a law suit brought against you as a result of an accident with your leased vehicle. It is NOT a replacement for your Garage Keepers Liability coverage.
I'LL NEVER CONVINCE MY BANKER TO FINANCE THE CARS
Contrary to recent beliefs, banks really do want to lend money. How you approach the bank makes all the difference. You are a leasing company - not a car dealer. You are not asking for floorplanning, you are asking for a loan on the wholesale cost of a vehicle to be used in your leasing company. Get the bank to understand the security and benefits of one vehicle. It's easier to increase additional loan amounts for additional vehicles. If you feel a Northland Representative would be beneficial during your conversation with a bank, we'd be happy to help!
I CAN ELIMINATE MY ADVERTISING EXPENSES
A large portion of your potential RTO®/LTO® customers are on your lot already. Instead of turning a customer away because they can't get financing - turn them into a RTO®/LTO® customer! Many of our dealers spend ZERO dollars on advertising. Ren'T'Own® and Lease'T'Own® thrives on word of mouth advertising. A satisfied customer results in praise and positive advertising for your dealership without spending a dime!
I CAN MAKE MORE PROFIT THAN BHPH, RETAIL, OR WHOLESALE
if you follow our recommendations on pricing your fleet vehicles correctly and if you also utilize our "rolling" technique, you would be amazed at the potential profit! Give us a call and we'd be glad to walk you through pricing and rolling examples using vehicles currently on your lot.