An independent dealer inquires about implementing a "rent-to-own" program at his dealership, seeking guidance from peers. Responses indicate that while RTOs are essentially alternative financing structures similar to leases, they appeal particularly to subprime buyers and have largely fallen out of favor with manufacturers, though at least one family dealership reports successfully maintaining a large RTO portfolio held in-house. The key insight is that RTOs remain a viable niche strategy for dealers willing to self-finance, but have proven challenging for larger manufacturers to sustain profitably.
