How Does a Biweekly Plan work?
The Automatic Savings America Plan (ASAP) is a biweekly payment plan with the emphasis on automation as that is the key to savings for the customer. Instead of the customer paying the monthly payment on their own each month, they agree to having their checking or savings account drafted by ACH (EFT) every two weeks (14 days) and payments are sent to the lender monthly. Because the payments are drafted every other week this creates 26 biweekly payments per year and only 24 are required to satisfy the lender. Two months out of the year will have 3 debits and we refer to them as triple debit months.
The remaining 2 payments are applied to principal approximately one sent every 6 months, unless there is a deferred enrollment fee owed. If the fee is still owed, the 3rd debit in a triple debit month goes to pay the enrollment fee from which your dealership would receive 70% in the month following the triple debit.
How Much Does Your Customer Save?
The savings from the ASAP will vary depending on the price of the vehicle, interest rate and term. In addition to an online calculator which can be personalized to your dealership, we provide you with our Biweekly Dealer America off-line, quick calculator. It is easy to use and you will pick the options of having the $1.95 per debit fees deducted and/or the customer deferred enrollment fee deducted from the savings analysis computation. In other words the level of disclosure will be up to you as you can show gross savings or net savings. We believe full disclosure showing net savings is best, but that is not real common among competitive biweekly companies. Once you join our team you will be able to download the software from the BACK OFFICE on this site. Here are some screen shots of the calculator.
