The Zero Plan

The ZERO Plan Guidelines define the maximum number of payments that can be offered to a customer and the minimum amount of down payment that is required.  Retailers can choose to offer customers less than the maximum allowed installment payments or collect more than the minimum down payment amount.   REMEMBER: The percentge of down payment is applied to the total sales price which is equal to the sales price plus the sales tax if applicable.  The ZERO Plan Guidelines are embedded in our ZERO Plan FormsBuilder and in our integrating menu partners software so that users cannot make entries outside of the current guidelines.

The ZERO Plan Retailer Fees define how much money will be deducted from the contract funding.  Every installment agreement provides zero percent financing to the customer.  Because no interest is charged the fees that reduce the Retailer's funding are how ZERO Plan receives their compensation.   ZERO Plan fees are calculated as a percentage of the unpaid balance or the amount financed.   There are three components that define what the fee percentage is.

1. The first fee component is the number of payments you provide the customer with.  The longer the payment plan the more the fee is.  Retailers should attempt to find the sweet spot to reduce their fee where the customer receives an affordable payment using the smallest number of payments.
2. The second fee component is the amount to finance or unpaid balance. The fee percentage is applied to the unpaid balance or balance to finance and not the total sales price. So the more down payment that is collected the less the fee will be. Retailers should always try to collect more than the minimum amount required in the guidelines.
3. The third fee component is the fee level earned by the Retailer.  Every month ZERO Plan calculates the average monthly number of contracts funded for any one Retailer OR a group of commonly owned Retailers.  ZERO Plan looks back over the last three months to determine the average number of contracts funded.   Based on the average a fee level of A,B,C or D will be assigned to the Retailer or Retailer group for the coming month.  At the end of each month we recalculate the average.  Retailers will receive an email from ZERO Plan each time their fee level changes.  The result is the more contracts that fund the lower your fee percentages will be!

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• Current Guidelines & Retailer Fees - Automotive, RV, Powersport