How it started.....and the bonus!
For some years I had been looking at the BHPH industry and the credit challenged consumer which it serves. Even back in 1990 we could see the huge numbers of credit challenged consumers was climbing. Taking into consideration the number of credit challenged consumers and the percentage of BHPH repossessions that were taking place, it was clear that something needed to change. Here’s what I saw: On average, in BHPH, 24% of customers were getting their cars repossessed. If you take a dealer who does 100 deals a year, 24 of those cars are going to be repossessed. Those 24 people who already have bad credit are now going to have worse credit because of a repo on their credit.
I kept thinking to myself – there’s got to be a better way to do business rather than hurt these people even more. There’s got to be a way to help them and make life better for them. We need to help them out. We need to change the world a little bit in our financing system so we can help these people go forward instead going backwards.
That’s when the answer came to me. If consumers could just bring the car back if they got into financial trouble – if they could just bring it back, walk away, and not be penalized with more fees or a repossession – there would be no additional harm to their credit.
And that’s how I came up with the concept of Ren’T’Own®!
As a result of the Ren’T’Own® program, several things happened that I didn’t expect.
Not only did it help the credit challenged consumer, but it helped the dealers as well! As you know, with BHPH, there are time consuming tasks and expenses involved with repossessions. With Ren’T’Own® there are no repossessions! In addition to the customer being able to voluntarily return the car if they get into trouble, the dealer actually owns the car until the customer makes the decision to buys it.
This program, this flexibility, changed the attitude of the customer. When the dealer tells the customer that they can return the car any time, for any reason, without penalty, they are thrilled! When the dealer tells them that they can come back for another car when they get on their feet financially they think WOW – this is the greatest dealer on earth! Their word of mouth feedback spreads like fire and makes the dealer a hero in the community!
Allen Lentsch is the founder of Northland’s Ren’T’Own®/Lease’T’Own® business model
which has over 25 years of proven history
and is being used by dealers in 49 states.
See for more information.