Western Funding Inc. has continually proven itself to be an innovator in the sub-prime finance industry and we are pleased to introduce 'The Smart Choice' alternative to traditional vehicle financing; the fixed value (balloon) payment contract. This program, as with all Western Funding's programs, is designed to increase the dealer's bottom line and cash flow.
We all know that most customers are payment buyers and if the dealer can get the monthly payment low enough to where the customer can afford it, they will buy the vehicle.
This idea is not new. It has been done for many years by many of the banks. The program works as follows: We are allowing our auto dealers to take a percentage of the unpaid balance (amount financed) and put it into a fixed value (balloon payment) to be paid at the end of the contract.
What is accomplished? Lower Monthly Payments, Low Down Payments (tax, license and fees) and Easy Customer Sale.
What makes it even more appealing is the customer has three options on the final fixed value payment:
- The customer can pay the final payment as contracted.
- The customer can return the vehicle to a pre-arranged location and the balance is forgiven, the account paid in full.
- The customer can refinance the balance with Western Funding for an extended time making it possible for the customer to keep the vehicle.
With this program, you can put a customer in a vehicle with a low down payment. We recommend a minimum down payment to cover the tax, license, and other fees. Naturally, the more down payment, the lower the monthly payment.
This program does not change the advance guidelines, the Loss Reserve Index, or the way it is adjusted and there is no need for a new Purchase Agreement.
Contact your vendor for software to calculate interest and APR on 'balloon payment contracts'.
Fixed value amounts can vary depending upon year and mileage
Contact your branch manager for additional information.