Deal Pack Blog
Be Ready for Your Customer’s Principal Payments This Tax Return Season!
It’s that time of year, where people are receiving their tax returns. This often means dealerships are experiencing more cash flow, whether through increased sales, or customers making additional payments. Along with this, I often receive calls where Deal Pack Pro users are curious how to take a payment that is applied to principal only. To do this, simply apply the payment as a Miscellaneous Credit. After receipting in this payment, cashiers may be asked by their customers why the Maturity Date and Number of Payments have not changed.
If you are a cashier, don’t let this catch you off guard! Instead, you can explain to your customers that the agreed upon schedule, which is what is reflected on the Amortization Schedule from the original deal, does not change. If the customer wants their schedule updated based on the current balance, Deal Pack Pro users can simply use the Loan Reschedule option to recalculate the new Maturity Date and Number of Payments. When that’s done, do not be surprised when you pull up the Amortization Schedule and it is different. It will now reflect the new schedule of the remaining payments, beginning with the next payment. As a bonus, you can give this to your customer so that they can understand what happened to their balance after their payment towards principal.