APR stands for Annual Percentage Rate and the percentage of interest you will pay on the loan.
A buy rate is the amount a deal is approved at based on the quality of credit. Buy rates range from 65% - 100% and will vary from deal to deal.
A risk discount is the percentage a deal may be reduced by in order to approve the customer. Risk discounts cannot be passed on to the customer. An example of risk discount could be 5%, meaning the buy rate is 95% and the dealership would be funded 95% of the amount financed. A risk discount cannot be passed on to the customer.
Recourse on a loan means that if a customer does not fulfill their loan we can then collect the payments from the dealership. Non-recourse would mean that if a customer does not fulfill their loan we will not collect the payments from the dealership. Bay Finance loans are non-recourse unless otherwise stated in the master dealer agreement.
A payment factor is the percentage you multiply by the amount financed to calculate the monthly payment for the customer. For example if a payment factor is 2.5% and an amount financed of $5000, the monthly payment would be $125.
The right-to-cancel period is required for all in-home sales. This is a three business day period in which a customer can choose to cancel the transaction by signing the document and returning it to the dealership. The right-to-cancel period cannot include Sundays, Federal Holidays, any day your dealership is not open, and Saturdays for the following states: DE, HI, IA, MI, MN, MO NJ, OR, and WI.
We offer a variety of different options to have your sales staff trained. We offer training videos, manuals, webinars, over the phone trainings, or visits from our outside sales representatives. Let us know what you need and we can work to schedule a time to work with your dealership.
Bay Finance has a standard program and standard promotions you are able to offer to your customers. We may offer special promotions that can be added or removed at any time.
A revolving loan is a loan with an open line of credit that customers can use to purchase goods from your dealership. This loan does not have a set end date and functions similar to a credit card. Once the amount owed on the loan is paid off, the customer can close the account if they choose. An installment loan is a loan for a specific amount that a customer requested to purchase a good from your dealership. This loan has a set term (12, 24, 36 months, etc.) and a set end date. The truth in lending section of installment loans will breakdown the customer finance charge, total loan amount, APR, and total amount of payments.
No. You are not able to offer split financing and use two finance companies for a customer.
Bay Finance is an indirect lender which means we work directly with your dealership until funded. Once your dealership is funded, we then work with your customer to collect monthly payments. If you have a customer interested in financing you can obtain their information and apply for them by going online, calling in, or faxing us their application.
No. Discounts may not be passed on to the customer. Dealers who offer financing may choose to raise their prices overall for ALL customers and then offer discounts for those paying cash, but any applicable discounts on an individual deal may not be collected from a customer. This violates Truth-in-Lending provisions.