I have been reading up on this for the past month. I know northland has a program for $800 bucks to start up.  Looking for some information on minnesota laws. Such as do we have to keep insurance on all the cars or can we leave that up to the customers just like in BHPH? Is it as simple as putting the car in the dealers name setting up a contract with the customer and sending them on their way? What really got me interested in this was all the wasted money i send to the state every month. Nothing like paying transfer and tax on a car just to get it back a month later to do it all over again. I would like to keep the car in the business name until someone actually pays it off. any info would be greatly appreciated.



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I have been doing the Rent to Own in Oklahoma for about 23 years now. I started with Northlands, they are helpful and great people but fees, GPS's and warranties are not top.  IN OKlahoma we keep title in our name for leverage and we put our in house warranty and give the customers free oil changes so we can make sure the car maintained well. We require customer to have full cov. insurance to protect our assets, for cheaper cars you can do CPI and make the money yourself.  It is not a good thing to start doing without Northland, SIDRA and any other vendor at least to get your feet wet and figure out what you are doing. I use GoldStarGPS after I have tried few others.

What is this CPI you do for cheaper cars?  Does this mean you don't carry nor pay the monthly cost to northland for protection for u on these cheaper cars.  Thanks, John  email: arribaauto@yahoo.com


I would like you to go to www.lhph.com and take a look at our site.  We are in the business of transitioning BHPH dealers to Lease-Here, Pay-Here Dealers with a Legally Compliant, Insured, Turn-Key program.  24 years of lease experience!


Rent to Own is similar to BHPH in some respects, but the Title remains in the dealership name.  The lease document requires the lessee to carry the primary insurance including comp and collision.  The dealer has to carry excess contingent liability insurance to protect the dealership from litigation caused by the customer driving a car in the dealership name.  We are one of very few companies that can furnish that excess policy.  The Tax is presently paid up-front like BHPH, but there is new legislation being proposed right now that, if passed, would allow the dealer to collect sales tax on each lease payment and forward it to the state.  If this bill passes, it will make Rent to Own much more attractive to dealers in Minnesota.  If you would like more information, please email your request to dan@northlanddealers.com or call me at 800 879-3433.


Dan Blowers

Jake, what you now have as a dealer is garage liability insurance.  You need to contact your garage liability insurance agent and tell them that you will be doing lease to purchase.  Most likely, they will require a contingency liability policy in addition to their insurance on any unit out in lease to purchase.  Contingency liability is one of the many products that Northland supplies.  I would be extremely cautious of anyone telling you that you do not require contingency liability insurance.  If they advise you otherwise, get it from them in writing.

Minnesota's requirements for units in lease to purchase differs greatly from many other states.  If you would like to call me I would be happy to review this with you.  

Best regards,

Jerry Eide
Dealer Plate, Inc.
Website: www.dealerplate.com
Email: support@dealerplate.com

We are a software company serving State of Minnesota offices.  We also offer lease-to-purchase/lease-here-pay-here software to those who are doing lease to purchase on their own, in addition to the clients of the largest providers in the Nation (such as Northland)--some of whom only refer their clients to Dealer Plate.  We have offered our Lease to Purchase software program since 1990--we understand the important details in this transaction!  The Dealer Management version of our software has been offered for over 25 years.

The problem i seem to be having right now is the contingency liability policy. Nobody will do it for the state of Minnesota. I had a few companies try but theres something about this state. The reason i dont use northland is the fees. Paying $20 a month per car doesnt make sense considering it only cost me $50 to typically transfer a title. The only time the $20 a month starts to make sense on a short term basis is when I sell over 3k.

The contingent policy does not have anything to do with transfer of title, it covers you in case of litigation due to one of your customers involving an RTO vehicle.  I dont exactly understand your comment.


the hole reason i want to go from bhph to lhph is because of the money spent with the state every time i repo a car. spend $60 to transfer, spend $20 to get another title. Then when i sell the car again another 60

Jason Sharpe is right, there is no connection between transfer/title fees and excess contingent liability insurance.  Thanks to all who said nice things about Northland.  The most important legislation in Minnesota in years has just gone before the Senate and House.  The hearings will be scheduled in the next two weeks.  If this bill passes, it will exempt lease to own used cars from the "upfront" sales tax in Minnesota.  You will have to collect it along with the periodic lease payment, but it will drastically cut down on the cash flow out at the point of lease.

Lease to Own also cuts down on title/transfer fees because you don't have to re-title the car each time you put it out on a new lease.  You are the titled owner all the way through.

Northland's fees are very low when you consider that it covers primary insurance tracking, excess contingent liability, and excess contingent physical damage.  You also get support for claims with the primary insurance carrier.

I have been doing LTO with northland for years, They are great people to do business with and the "Fee's" can be either paid by your client, or figures as a cost of doing business.Before you quote a payment you may want to figure what your costs are going to be and figure it in. I have no idea what it is in Minn but I'm sure you can find out. My clients pay any & all cost for registering the vehicle them selves just as if they bought a car off the street, title,tax,registration,plates etc.they understand that. They also MUST carry full ins coverage.Northland is also in Minn & could help you out as far as neccessary laws and procedures. Personally I don't feel their fees are excessive, it's just a reasonable cost of doing business. Their support is fantastic! A couple of hundred a bucks a year is pritty cheap allowing you to make thousands isn't a bad trade, don't you think? also these clients become an annuity and repeat income if you treat them with dignity & respect just as you would want to be treated. After 90 days your gonna find out who is or wasn't a good bet.

How do you structure the deals? For example on a car with a $5000 acv what is the payment, down payment and end value. What is included in the payment, I know for example in Nebraska lease payments include the monthly sales/use tax. Thanks for any information.

Karl Jensvold

Winners Circle Auto Center

I am happy to furnish that information but this may not be the right forum for that discussion.  Please send an email request to dan@northlanddealers.com and I will send an information packet along with my contact information to you immediately


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