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By Deal Pack - July 31, 2012
Good question! And it’s one I’ve heard many times during training sessions and demonstrations of the Deal Pack software to folks like you, in the BHPH industry. As a BHPH dealer, you not only sell the vehicles, you finance the deals; you are the bank, not just a car salesman. VSI stands for Vendor’s Single Interest insurance, and it protects the lender (you!) under multiple circumstances:
Damage to the vehicle sustained when the borrower did not have the required insurance coverage, including total loss
Losses due to the lender being unable to repossess the vehicle (unable to locate the vehicle, or if it was confiscated by the authorities)
Losses due to theft or damage to the vehicle after it was repossessed
One of the primary benefits to the lender is that, in most states, the cost of VSI insurance can typically be passed along to your customers as part of the loan origination fees, and can keep your losses to a minimum by reducing net charge-offs. Under many circumstances, VSI insurance can be waived if the borrower has secured their own insurance and properly names you as the lien holder. Under VSI, only the lender can make a claim and receive compensation if the vehicle is damaged, totaled or if the borrower defaults. It’s important for the borrower to understand this coverage does not protect them directly in any way.
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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.