Does the Down Payment Reduce the Dealer Fees Included in the Finance Price?

The app's default setting is to reduce the dealer fees when the down payment is applied. (Example 1.)

The app can be set to NOT reduce dealer fees when the down payment is applied. Please contact your Customer Success Specialist. (Example 2)

Example 1: The app defaults to reducing the Dealer Fees when the down payment is applied.

The following data is used for this example:

Cash Price	$ 9183
Dealer Fee	5%
Finance Price Before Discounts	9667
Discount	1000
Pricing Adjustment (Hidden)	0
Down Payment	2000

1) The Finance Price is adjusted to reduce the dealer fees applied to the down payment
Cash balance without a down payment	$ 9183
Cash Balance with a down payment (-2000)	7183
Amount Financed (7183/1- 5%)	7562
Adjusted Finance price before discount and down payment (7562+2000)	$ 9562
2) Apply discounts and price adjustments
Adjusted price with discounts and pricing adjustments (9562-1000+0)	$ 8562
3) App Displays:
Total Investment: Adjusted Price with discount	$  8562
Less Down Payment	$ -2000
Remaining balance	$  6562
Monthly Payment (equal monthly) (6562/12)	$    546.83/mo.

 

Example 2. The Finance Price is NOT adjusted for the Down Payment

The following data is used for this example:

Cash Price	$ 9183
Dealer Fee	5%
Finance Price Before Discounts	9667
Discount	1000
Pricing Adjustment (Hidden)	0
Down Payment	2000

1) The Finance Price is NOT adjusted to reduce the dealer fees applied to the down payment
Cash balance without a down payment	$ 9183
Amount Financed (9183/1- 5%)	$ 9667
Finance Price	$ 9667
2) Apply discounts and price adjustments
Finance price with discounts (9667-1000+0)	$ 8667
3) App Displays:
Total Investment: Finance Price with Discount	$  8667
Less Down Payment	$ -2000
Remaining balance	$  6667
Monthly Payment (equal monthly) (6667/12)	$    555.59/mo.