Mike and Linda Garner.

The rent-to-own industry for years has applied itself to everything from toasters to televisions. And for nearly a decade it has included the automobile marketplace through the genius of only a tiny handful of companies who have recognized the potential there. As domestic used car sales climbed, reaching a record $99 billion in 2006, the Southeast Auto Dealers Rental Association (SEADRA) discovered it could help rental dealers draw on this huge and growing market as well as develop the untapped base of customers who are capable of buying and paying but who had historically been turned away by automobile dealers because of credit issues. It began offering a unique, turn-key rent-to-own program that provided dealers with the education and support they needed to make it possible for almost every potential customer to have a car. In short, SEADRA enabled dealers to avoid saying “NO” and at the same time build a profitable business with unlimited potential. And now, RTO authority and franchising expert, The Premier Companies, has joined forces with SEADRA. They have combined Premier’s proven ability to help RTO entrepreneurs become business owners with SEADRA’s established system within the automobile industry, and their collaboration has become Premier Rent ‘N’ Ride.

“SEADRA provides the most comprehensive support by helping dealers develop the knowledge on how to buy cars at auctions; how to finance cars and how to go about protecting themselves, their businesses and investments through some sophisticated insurance policies,” says Premier President/CEO Trooper Earle. “By franchising, we will take SEADRA’s program to new levels and provide dealers with a more systematic approach to integrating their RTO options or starting up their new operations. SEADRA and Premier bring a lot of expertise that no entity in the industry has, and we’re doing what no one has ever done. We want to help retailers and independent car dealers understand how they can do rent-to-own and be more lucrative as a franchisee. And we will help them even to manage their business better for multiple operations.”

How would you answer?

Mike Garner, marketing director of SEADRA, asks these questions of traditional auto dealers:

• How many would-be customers walk away with enough money in their pockets to cover your vehicle (or most of it) but can’t get financed?

• How much money and time is spent on repo’s, and by the time you recover your vehicle it’s trashed?

• How many times have you wished for a way to make repeat customers out of everyone who buys a vehicle?

• How many people got away while you were trying to get them financed, and by the time it happened, the deal was cold? How much time did you spend on one deal?

• How many times did your lenders turn down an applicant who you KNEW was capable of making the payments but had a history that was a mess?

• How many times have you tried to find a solution for the slow months when your cash flow all but dries up?

According to Garner, SEADRA has helped small, independent auto dealers turn the answers to these questions to their favor since SEADRA began offering RTO solutions to them, converting those who couldn’t get financing into good customers. “Eight out of every 10 people that walk on the average car lot in the United States have money for a down payment and hold a job, but have little, bad or no credit,” says Garner. He has shown dealers how to overcome that, and through his system and ongoing operational support, they have collectively rented more than 50,000 vehicles.

SEADRA

SEADRA’s system includes several components that make it successful, not the least of which is a dual insurance coverage policy for the dealer that protects their investment and profits. Complete training, customer tracking, a starter-interrupt device to remind and encourage prompt payment and other services ensure that a dealer will not lose his investment and be able to run his RTO business smoothly. Through SEADRA’s rental arrangement, dealers retain ownership of their cars until the rental agreement has been fulfilled. And because a customer can always turn in a car with no penalty at any time, the potential is there for future upgrades, making him a long-term source of revenue.

As successful as they were, however, SEADRA wanted to brand their services and pull together their group of dealerships into a cohesive body that would be better served as a network. It is that element that Premier will now bring to the table: franchising. Together, SEADRA and Premier will be the first to offer this unique opportunity to current auto dealers and those breaking into this industry to become a Premier Rent ‘N’ Ride automobile RTO franchisee. To established independent dealers, it will help them grow their customer base and serve as a hedge against growing concerns in the economy. For those expanding their operation or breaking into business ownership as a new dealer, becoming a Premier Rent ‘N’ Ride RTO franchise will provide them with deep industry expertise, invaluable support and exceptional financing from those who have proven they know more about doing it than anyone else.

“When it comes to putting your business or future business on the line, you want the greatest opportunity for the least amount of risk,” says Earle. “SEADRA is the largest and fastest-growing automobile RTO system in the country, and their program is helping established industry veterans and those breaking into the industry to flourish as auto dealers.”

The Premier Companies

The Premier Companies has been leaving a wake throughout RTO and other related industries with its successful franchise start-up and support system that helps entrepreneurs implement their dreams. With its beginnings as a rental-purchase licensor and more recently franchiser, Premier added Premier Home Furnishings, Premier U-Getcha cash services and Premier Wheel Workz to its original Premier Rental-Purchase company. According to Earle, it is a natural to add automobile rentals to the fold, and joining with SEADRA is a perfect fit that will make Premier Rent ‘N’ Ride a powerful force.

Garner sees an enormous potential in the collaboration. “We have some great experience between these two companies,” he says.” We both have proven success, and combined we will offer a strong program. We are light years ahead of anyone in the industry, and we expect big things. Premier’s franchising capabilities will enhance our presence to dealers in the marketplace and offer them a higher level of support that will ensure their success. This industry is huge. Everyone wins.”

The national office of Premier Rent ‘N’ Ride is located in­­­­­ New Orleans. Visit their website at www.rentride.net or call Mike Garner at 877-573-2372.

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RTO Magazine is the leading rent to own industry print publication.