Northland Auto Enterprises Case Study
For more than two years, KC Auto Sales, San Angelo, Texas (5 hours from Dallas- Ft. Worth area) has been a customer of the Northland Auto Enterprises used car leasing program – Ren’T’Own®/Lease’T’Own®.
The RTO/LTO® program makes a lot of sense to better serve this market for a number of reasons:
- Customers need a flexible financing option when their choices are limited due to low credit scores and financial challenges. With RTO/LTO®, dealers own the vehicle 100% – a strong defense against repossessions, bankruptcies, and delinquent payers. The customer is given options when other dealers have turned them down.
- Customers of KC Auto Sales buy used/pre-owned cars from the dealer through the Ren’T’Own®/Lease’T’Own® payment program with no credit check, 0% APR, and low monthly payments. Customers appreciate the price and service level.
- KC Auto Sales has appreciated the cost efficiency – $1 million and $5 million options for liability coverage, and having a solid alternative to traditional finance. “It’s easy to use, and the customer service is great,” says Tim Carterof KC Auto Sales. “If we have a lawsuit from an accident, the Northland legal team takes it on.”
For Tim Carter, it’s been a very good market for the dealership, but the challenge has been serving customers while effectively managing the leases, and sometimes having to face legal problems.
Dealers are learning a lot more now about the liability risk with leasing – it can quickly transition into a lawsuit outside of insurance policy coverage. “We were sued when a driver was killed during a collision,” Carter said. “Northland took care of it – we didn’t have to worry about liability.”
Leasing has become a strong alternative financing method for used car transactions, but dealers have to learn how to manage the contracts and comply with detailed state laws overseeing leasing. Managing and overseeing leasing contracts is guaranteed by Northland. While this process can be difficult and very stressful, if you’re being audited by the state, Carter says “Auditors and investigators are not properly trained on leasing contracts. Northland is able to resolve these issues for us.”
Visit the Northland website for more information on Ren’T’Own®/Lease’T’Own®.