When you hit Save in a Deal, one of several things will happen:
- When working in a new deal, if you have not selected an inventory item to make the deal on, should you click on the Save button, you will not be prompted and the deal will be saved as a worksheet.
- If you have an inventory item (vehicle) selected but have no customer information, when you click the save button, you will not be prompted and the deal will be saved as a pending deal.
- When you have both an inventory item selected and have customer information entered, the save button will display a dialog box and will have several options available.
- Save-Sold Retail – This option is used when the deal will be a ‘Cash’ or ‘One-Pay’ deal, or if you are financing through a third party such as a bank or credit union.
- Save-Sold Retail/Buy Here, Pay Here – This option is used if your dealership is providing the loan and will be performing the collections on the account.
- Save-Sold Wholesale – This option is used if you are saving the deal as a wholesale deal
- Save Pending – Leaving the deal as pending keeps the deal open and leaves the vehicle available.
Calculate Next Payment Due Date
This option is available when you click on Sold Retail/Buy Here, Pay Here.
- Based on Principal Allocation in Payment Schedule – This option is used if you want DeskManager to advance the Next Payment Due Date based on taking the total principal collected so far and applying this to the Amortization Schedule values.
- DeskManager will take that total amount collected so far towards principal (found on the Payments Tab of the customer’s deal, in the Collected/Applied area, left column) and compare that to the Total Principal column on the Amortization Schedule table.
- DeskManager will find the closest match on the table that is equal to or less than the total principal collected so far and will consider that row to be ‘Satisfied’.
- As a result the date listed as the due date for the next row in the table will become the customer’s Next Payment Due Date.
- What does this mean to the dealer?
- In the situation where the customer is typically paying after the payment due date, more of their payment is used to satisfy interest that is currently owed than is applied to principal.
- This results in the fact that these customers will never satisfy the requirements to advance that next payment due date unless they pay more than the periodic payment calls for so as to cover the missing principal.
- Their payments tend to show as late more often and will trigger the Automatic Late Fee tool to apply a late fee.
- Based on Total Payments Allocation – Using this option DeskManager will look at the ‘Payments’ figure (Also found on the Payments tab of the deal, in the Collected/Applied area in the left column) and compare that figure to the Total Payments column of the Amortization Schedule.
- DeskManager will find the closest match on the table that is equal to or less than the total payments collected so far and consider that row to be ‘Satisfied’.
- Again, DeskManager will then look at the due date found in the next row and will assign that as the customer’s Next Payment Due Date.
- What does this mean to the dealer?
- In this situation, DeskManager is basically ignoring how early or late a customer pays, but only concerning itself with the total that has been received so far when determining how to advance the next payment due date.
- Customers who pay the contracted payment amount are not penalized for being late as long as they are within the grace period.
- Obviously when paying late more of the payment is used to cover the interest that is due, and over time that will cause the contract to take longer to complete, but that is the nature of Buy-Here Pay-Here.
- Always Advance One Period – This option does not use any of the payment figures to calculate the customer’s Next Payment Due Date, but looks instead at the Frequency that was selected when creating the deal and adds exactly one period to the current date when determining the Next Payment Due Date.
- For example, imagine a deal where the frequency of the deal was set to Monthly, the customer’s original due date was the 1st of the month and this option was selected when the deal was saved.
- If the customer should instead come in and make a payment on the 3rd of the month, the system would add exactly one period (in this case, a month) to that current date and that would become this customer’s Next Payment Due Date, or the 3rd of the following month.
- At the same time, if the customer should come in a few days early (for example on the 27th of the month) basically the same results will take place, the new payment date would become the 27th of the following month.
Late Fees & Adjustments
- Add to Periodic Payments – Use this if you want to add any adjustments (such as late fees) to the period payment.
- For example if a customer was making payments of $200.00 per period and they have $25.00 in outstanding Late Fee’s, the system would attempt to collect $225.00 in the next payment after that late fee was applied.
- Add to Account & Pay-Off Balance Only – Use this if you want to add any adjustments (such as late fees) to the account balance and pay-off balance only.
- In this situation using a similar figure as the previous example of $200.00 per period, the system would still attempt to collect $200.00 at the time of the next payment after the Late Fee was applied.
- But once the customer had finished satisfying their outstanding principal, they would still be required to make payments until that late balance had also been reduced to zero.
- If they wanted to pay-off the loan early, the pay-off displayed in their deal will already have this amount included in that balance.
- Use the drop down box to specify the sales reps, closer, and F&I people, if necessary enter percentage rates or flat dollar amounts for the individuals to record commissions.
- Commissions may also be entered on the Recap tab of the Deal window.