The wheel and tire business is the same everywhere. I've been in Georgia, Florida, Texas, Oklahoma, California and New Mexico. The business itself doesn't change due to geography.
Travis John, District Manager, RimTyme

Photo RTO Online

Travis John, District Manager, RimTyme. See video interview with Travis John

It's about the bling. Americans love their cars. The more passionate a person is about his or her car, the more time and money they will spend to set their ride, and by extension themselves, apart from the crowd. Anyone who has ever attended a Dub Show (see story) has seen a glimpse of the "automotive lifestyle" subculture that is driving the growth of custom-wheel leasing.

Travis John began his RTO career with Rent-A-Center in 1994. After nearly 15 years in both traditional RTO operations and custom wheel rental including a stint with RIMCO, he has come full circle and is now serving RimTyme as District Manager for Oklahoma and Kentucky. John will also manage RimTyme districts soon to be in place in Indiana and Ohio. RimTyme is a division of ColorTyme, a subsidiary of Rent-A-Center.

RTO Online interviewed John at the recent grand opening of RimTyme's 19th location in Plano, Texas. See video interview with Travis John. We also interviewed; RimTyme VP of Operations Tim Hogan, Store Manager Cain Maxwell and ColorTyme's newest franchisee, Bud Evans. See 46 photos from the RimTyme event here.

John was drawn to RimTyme by the company's relationship with Rent-A-Center and its commitment to open corporate stores in addition to franchising (see story). "I was intrigued by the possibilities of a company with the financial backing of Rent-A-Center," he said.

Having seen both sides, John says there are significant differences between traditional rent-to-own and custom wheel rental including a higher percentage of retail sales. "The split is about 70-30 lease versus retail and we have customers from all income groups." John believes there is no difference between retail and rental customers. "They all want something that will set them apart from the crowd."

Custom rims are a big-ticket item and according to John, 80% of customers will choose weekly renewal payments over monthly. "Customers find it easier to pay $75 per week rather than $300 per month." The math may be the same, but the difference is significant for customers with limited disposable income.

John disagrees with others in the business that say custom rims are not an impulse item. "I think wheels are more of an impulse item than traditional rent-to-own merchandise," he said. "One of our big selling points is 'get it today'." John says that customers often do their research before visiting the store and the only way to satisfy them is to give them what they want immediately.

John explained that requiring an initial payment is one of the few things that limit the impulse. RimTyme requires an initial payment of $100 on a set of 17s and $200 on 20s. The initial payment firms up the customer's commitment and reduces one-payment returns. "It doesn't eliminate returns after the first payment, but it slows it down." Reducing returns allows custom-wheel dealers to keep more new product in the store and limit pre-leased merchandise.

John says the average length of a custom wheel agreement is longer than with more traditional rent-to-own products. He also claims that the ownership rate is much higher. "In my experience, wheel and tire leasing customers have about a 70 percent ownership rate."

The amount of inventory necessary to satisfy the majority of customers the same day can be staggering. John says the Plano RimTyme currently carries 130 different sets in stock. But that just scratches the surface of what needs to be available via special order. "If we can satisfy 85% of the population by having something for their car today then that's a win."

Once a wheel model becomes popular, manufacturers will produce it to match the varying bolt patterns, back spacing and center bore differences necessary to fit most common vehicles. Specialty cars can be a challenge according to John. "An impala is a normal everyday car. But if we get an Audi TT then that's outside the normal realm. We can usually get special orders in two to three days."

Tread patterns are increasingly important to customers and are becoming more exotic. One model carried by RimTyme has flames built into the tread pattern that extend across the entire sidewall. "Customers like the look of the total package," John said. The various patterns also contribute to the features and benefits story. "Patterns aren't just put there to look cool or different. There's a form and function to that pattern as well. Explaining the design features helps the customer make an informed decision."

Black is the New Chrome

Black Chrome, which is actually an applied powder-coat paint, is becoming very popular with leasing customers. RimTyme warranties all wheels during the life of the agreement. After ownership is transferred to the customer, the manufacturers warranty applies. John says most manufacturers offer a two year warranty on finish and a lifetime warranty on structure. RimTyme also sells an optional protection program for basic road hazards.

Just like most traditional rent-to-own operators, RimTyme offers Lifetime Reinstatement for customers that must, for whatever reason, return the rims before ownership is achieved. "It is common in the wheel business," John explained. "We encourage people to take their stock wheels home with them. If something interrupts their cash flow and they have to return the rims, we'll happily remove our product and reinstall theirs." RimTyme holds the returned rims for 30 days. After 30 days, returning customers can apply the money they've already paid toward another set.

As a district manager, big part of the John's job is training and recruiting. "I prefer people with previous rent-to-own experience. Its easier to make a wheel person out of a rent-to-own person, than it is to teach the rent-to-own business to an experienced wheel and tire person."

One common misconception about the custom wheel business is that its popularity varies by region. "The [wheel and tire] business is the same everywhere," John says. "I've been in Georgia, Florida, Texas, Oklahoma, California and New Mexico. The business itself doesn't change due to geography."