From late fees to due date calculations, Buy-Here Pay-Here accounts can vary widely. Take a moment to look at your dealership’s current BHPH settings and ensure they’re calculating according to your preferences and legal requirements.
Buy-Here Pay-Here Setup
First, click the Settings cogwheel located at the bottom of the leftmost sidebar.
Under the Deal category, click BHPH & Deal Settings.
In the Late Fee Settings section, check the box if you’d like to Automatically apply Late Fees to late accounts.
Then set the Late Fee Terms.
If Late Fees are Due Immediately, they are automatically deducted from the customer’s next payment. This means they’ll need to pay the late fee in addition to their regular payment to no longer be considered late.
If the Late Fee Terms are set to Due before/at the End of the Loan, the customer can pay their accumulated late fees at a later time.
Next, configure your late fees. The column along the top designates the type of payment frequency. This means you can charge different customers a different late fee depending on how often they’re expected to pay.
Under the Miscellaneous category, set your Due Date Calculation Method. Total Payment Allocation will compare the actual payment collected to the expected payment in the amortization schedule. If the actual payment is behind the expected payment at that due date, the customer will be considered late.
If Principal Allocation is selected, DeskManager Online will compare the principal allocation to the expected allocation in the amortization schedule. If the principal allocation is behind the expected allocation at that due date, the customer will be considered late.
Lastly, you can set your method to Always advance one period. This option will always extend the due date to the next period when a payment is collected. This means as long customers are making some form of payment, they will not be considered late.
In the Bounced Check Fee field, you can enter a fee customers will incur of their check bounces. When voiding a collected check payment, you can select Mark as Bounced to automatically apply this fee to the account.
If Never advance past the next scheduled due date is checked, customers will not be able to make payments in advance. For example, a customer who makes three payments in the same month will still owe a payment the following month.
If you are calculating payments due following Rule of 78, check Payment Due includes Next period interest.
Under the Default Receipt Setting, select if you want to email and print payment receipts by default. You can always choose to print or not to print when collecting a payment.
If you’re taking advantage of Automatic Payment processing, decide if you want to send emails on success or failure. Then determine if or when you’d like to try to process the payment again.