Leasing and Rental Credit Products in TurnKey Lender Auto Financing Solution
The latest release of the TurnKey Lender Auto Financing solution was enhanced with two brand-new credit products that dealers, retailers, and service providers.
In this article, you can find the instructions on how to get started with these new credit products in your lending portal.
Leasing credit product
First thing first. The leasing calculations that take place in the TurnKey Lender solution are developed according to the common industry standards as per:
Our system is set to calculate the lease payments in the most common ways, but the Calculations Engine is flexible enough to meet even the most specific requirements you may have to your credit product.
Lease parameters
You can start working with the Lease credit product by creating anew credit product in the System workplace and selecting Lease from the options in the Loan type selector.
Then, you need to set the Leases’ interest rate, man/min amount, max/min loan term, and other parameters. If a customer needs to know the money factor, they can simply calculate it as the interest rate divided by 2400.
The sales tax field is also an important one and is located right under the loan type selector.
Next, you can jump to the first part of the application form to see how the loan (lease) amount is calculated.
You’ll see that the loan amount is disabled on the screen – it’s calculated automatically as Vehicle Price - Trade-In Allowance – Down Payment – Residual Value. When you start to fill in these fields you’ll see the loan amount value changing.
You can see the LTV and PTI indicators on this screen too. They’re calculated on the flight so the Originator can enter a higher down payment to reduce them to an appropriate level.
When all numeric fields are filled out, the system will show the preliminary schedule and the amount of the monthly (total) payment.
For the next step, the system asks you to fill out the customer demographic data, and then you proceed with the regular workflow used for installment loans.
Rental credit product
Rental is another loan type you can find in the credit product settings of the new TurnKey Lender Auto Financing Solution.
Rental payments depend on the vehicle (or other equipment) category which a user can set in System > Dictionaries > Categories.
When the categories are set in the System, they become available in the credit product.
Important!
The payment amount is counted per chosen frequency. For example when the periodicity is weekly and the payment is $50, it means that the rent price is $50 per week.
Later on the application form the user will choose one of the categories available in a selected rental product. The system will pre-populate the payment amounts automatically.
The remaining parts of the workflow are the same to the loans and leases.