Complete the form below and we will contact you.
We will be reaching out to you shortly.
By Deal Pack - September 10, 2012
When creating your user fees for online payment portals, there are some things that you may want to think about beforehand:
Due to the nature of BHPH sub-prime auto financing, and LHPH sub-prime auto leasing, the profit margin on the unit pricing is already high; the interest rate on the financing is high; you can calculate the interest as High APR Simple Interest, Add-On, or Rule of 78’s. None of the above would be acceptable in the normal car financing world.
What am I getting at? With the issues stated above, you are already taking a large portion of the consumer’s income up every month. Would you really want to run the risk of the customer going not being able to pay their payment because of another user fee? I have heard of user fees in the range of $10.00 per transaction. At that amount, with a customer on a weekly payment schedule, there goes another $40.00 a month out of their paychecks. That $40.00 could be the difference between them defaulting on their loan, or lease.
Why should you want to offer the online payment? Less time your employees, or yourself have to spend taking payments from customers; Less cash on your premises, which means less chance of robbery, and embezzlement; It is more convenient for the customer to make their payment. More space for new customers to park to view your vehicles.
Enter your email address and be notified of new posts.
Advanced Business Computers of America (ABCoA) develops and supports end-to-end software solutions for the subprime finance industry. Since 1983,
we have helped automotive dealerships and finance companies eliminate duplication, remain compliant, and achieve success with dependable, all-in-one software and white glove service and support.
Deal Pack is a complete, all-in-one software ecosystem customizable to your exact needs and scalable to your exact size - helping improve your operations, grow your business,
and solve the challenges you face. Whether you are a finance or sales company, multi-entity or publicly traded company handling BHPH or LHPH, operating or capital leases,
internal or external floor-planning, retail, rentals, consumer loans, origination, or seasoned paper, Deal Pack is the dependable software for mission critical operations.
Deal Pack handles all of your business needs transparently – providing you measurable improvements and complete financial control, saving you time,
increasing your bottom line, and allowing you the freedom to focus on your daily operations. Deal Pack is relied upon by thousands of customers across
all 50 states in the United States and six countries around the world. Customers properly using Deal Pack have never lost an IRS audit.
To learn more about ABCoA, visit www.abcoa.com.