By Amir Dabiri - April 8, 2014
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.
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
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