AHFC Electronic Contracting Frequently Asked Questions V0.1

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2 Published on 09/18/2017 Introduction The following cover a range of questions that dealers may ask as AHFC launches its electronic contracting solution, icontracting. This document will answer questions on the three broad topics: AHFC electronic contracting overview Dealer readiness System navigation This document is intended to supplement existing training and support resources, elearning and Dealer Reference Guides, also available via Honda University. This document is for dealer usage only. Please do not distribute outside of your dealership. Table of Contents AHFC ELECTRONIC CONTRACTING OVERVIEW I. ABOUT ELECTRONIC CONTRACTING What is electronic contracting? What are some features of electronic contracting?... 5 II. HOW DOES ELECTRONIC CONTRACTING BENEFIT ME AND MY STORE? What are some of the benefits of using electronic contracting?... 5 III. DEALER RESOURCES What resources are available to me if I have questions?... 5 IV. ORIENTATION READINESS What is the purpose of orientation?... 5 V. PRE-LAUNCH READINESS What items should be completed in the weeks / days prior to launch?... 6 VI. NAVIGATING FORM FIELDS Do I have to complete all of the data entry at one time? Is there a limit to the number of times I can resubmit when an error or warning is received? What actions should I take when an error or warning is received? How long are verifications valid? Can a funder respond to my inquiry about an error? What is vehicle validation? What is the difference between an error and warning?... 9 Page 2 of 21

3 14. Where is signature information stored? Where can the customer use the ipad to sign? How long after the signing process has begun must it be submitted? What are the three post-submission statuses? Which devices can be used to submit and print the contract? How are data entry fields completed? What should I fill in for the last month s payment on a retail contract? Are the Total Amount Financed field and the Amount Financed field the same? Which fields do I have to complete when entering down payment and trade information? How do I add insurance products? What products need to be disclosed in icontracting? Where do I enter fees if the fee is not listed? How do I enter residualized hard adds for icontracting? What does Miles at Inception mean? How do I know the Inception Rate? How do I enter mileage for a lease in the icontracting data entry fields? What does the Additional Advance field require? What is the Cash Price? How do I enter all of the fields in Capitalized Cost Reduction? Why do I get an error message related to the Amount Paid at Signing? What can I do to make the calculated monthly payment and the monthly payment from my DMS match if they do not? When does the Use Tax Percentage field get used in the Payment section? What is entered in the Property Tax field? How do I add Other Taxes? Why do I get an error message with the Monthly Payment section? How do I add Fees? How do I add insurance products? VII. MANAGING ERRORS AND WARNINGS How do I resolve a situation where my participation exceeds the maximum spread allowed? What happens when the contract rate is greater than the maximum allowed? Is there a way to resolve a mismatched contract model ID and approved model ID? Is there a way to resolve a mismatched contract term and approved contract term? How do I fix a contract if the name and address on the contract does not match the application? Page 3 of 21

4 46. How do I resolve a situation where the Advance exceeds approval? How can I resolve a service contract that is over Advance? Is there a way to correct a contract where a warning is received for being over residual? Where do I find a flex claim if not found in performance center? How do I correct a contract where the payment exceeds the approved max payment amount? VIII. OTHER CONTRACT MANAGEMENT CANCELING, PRINTING What can I use POS capture for versus esign? Can I cancel a contract before it s submitted for funding? Can I cancel a contract after it is submitted for funding? How do I print the client copy of signed contract documents from a desktop? How do I print the client copy from the ipad of a signed contract documents from the ipad? 16 IX. ASSIGNING PERMISSIONS How do I set up permissions for individual users at the dealership to use digital contracting? Page 4 of 21

5 AHFC ELECTRONIC CONTRACTING OVERVIEW This section will provide background information on AHFC s electronic contracting system and its benefits. I. ABOUT ELECTRONIC CONTRACTING 1. What is electronic contracting? Electronic contracting is AHFC s digital contracting system that streamlines the contracting experiencing by incorporating validation and point of sale capturing. The result is a more streamlined and faster funding experience for the dealer and a more refined user experience for the customer. 2. What are some features of electronic contracting? After the contract information is entered, contract validation checks AHFC-specific items on the contract for validity. Point of Sale capture allows the dealer to upload supporting forms and documents by attaching a picture image. The funding package checklist is a dynamic dealer document checklist that tracks specific forms and trailing documents. II. HOW DOES ELECTRONIC CONTRACTING BENEFIT ME AND MY STORE? 3. What are some of the benefits of using electronic contracting? Electronic contracting brings a tablet based signing process to the customer and dealer. It is untethered, eliminates print review copy and uses sign and tap functionality. The result is four times faster funding and a reduction in both floor plan interest total shipping costs. III. DEALER RESOURCES 4. What resources are available to me if I have questions? If you have questions about icontracting, you may utilize any of the online training courses available or Dealer Resource Guides (DRG) located on Honda University. In addition, you may contact insc and to report any issues with the system. DEALER READINESS This section will provide dealers with resources and information to prepare for the rollout of AHFC electronic contracting. IV. ORIENTATION READINESS 5. What is the purpose of orientation? In the weeks leading up to launch visit, your DRM will provide orientation to introduce staff to electronic contracting and begin technical readiness activities. Orientation will cover the following: a) View orientation video Your DRM will facilitate conversation with staff on key features and benefits specific to your store. b) Process/best practice discussion Work with your DRM to build out potential workflow best practices and prepare strategy prior to launch. Page 5 of 21

6 c) Review ipad requirements: Your DRM will share ipad requirements for icontracting. i. Dealers must have ipads in order to participate in the digital contracting rollout. 1. Hardware requirements: a. ipad only, specifically the following: b. ipad 2 (All configurations) c. ipad 3 (All configurations) d. ipad 4 (All configurations) e. ipad 5 (All configurations) f. ipad Air (All configurations) g. ipad Air 2 (All configurations) h. ipad Pro 9.7 inch ( All configurations) i. ipad Pro 12.9 inch ( All configurations) j. ipad Pro 10.5 inch (All configurations) 2. Software requirements: a. ios 8.0 and above supported d) Review browser requirements Chrome is the recommended browser e) DMS Provider Share information for DMS. Notify your DRM is you have switched DMS providers within the past 6 months V. PRE-LAUNCH READINESS 6. What items should be completed in the weeks / days prior to launch? Prior to launch visit, your DRM will check in with your dealership prior to launch visit to confirm the following have been completed to help ensure launch visit goes smoothly: a) Confirm ipad have been purchased Page 6 of 21

7 Your DRM will confirm you have purchased correct ipad model for the launch. A list of compatible ipads can be found on the previous page of this document. b) Confirm ipads can be/have been connected to Wifi Your DRM will confirm you have connected the ipads to Wifi in the dealership store c) Confirm app has been downloaded Your DRM will confirm you have downloaded the AHFC ideal app from the itunes app store Search AHFC ideal in the app store search bar and download. d) Confirm browser Your DRM will confirm you are using a supported browser. e) elearning reminder Dealership staff who should complete web-based training: i. Required: F&I Manager, Finance Director, Finance Manager ii. Optional: business office, sales manager, sales supervisor, sales assistant Page 7 of 21

8 iii. Note: All required roles should complete training prior to the launch visit date The elearning location: i. The elearning can be accessed via the Learning Catalog on Honda University. f) Receive launch visit expectations The launch visit is intended to reinforce training and provide support when icontracting is launched. Support includes: i. Onsite support: Expect to have at least one DRM arriving onsite on the day of launch visit. ii. Support duration: Onsite support will vary based on dealer need. iii. What activities will be covered during launch visit? 1. Setting up user permissions, verifying and launching ideal 2. Assist dealer personnel executing digital contracting 3. Conduct additional training 4. Gain feedback 5. Support resources post launch visit g) Obtain digital contracting permissions info Setting up permissions i. Your DRM should advise the in system administrator to assign user permissions the day before the launch visit using the info below. ii. Which users should be assigned digital contracting permissions? 1. Permissions can be assigned on an individual basis. 2. The in system administrator should assign user permissions the day before the launch visit. 3. There are three permissions the in system administrator can grant to dealership users related to digital contracting: Page 8 of 21

9 a. View: User can view/print contract status, details, and documents. b. Edit: In addition to the View permission functionality, user can start and modify contracts. Can submit contracts to AHFC for verification. Can view, export, and terminate authoritative copies from Vault. c. Sign/Submit: In addition to the Edit permission functionality, user is permitted to initiate and complete the signing process for all documents. Can submit the funding package to AHFC for funding and submit trailing documents. SYSTEM NAVIGATION This section will provide information on how to enter data, manage verifications, and work through the AHFC electronic contract system. VI. NAVIGATING FORM FIELDS 7. Do I have to complete all of the data entry at one time? No, begin entering some contract fields before menu selling then click on back button and save. 8. Is there a limit to the number of times I can resubmit when an error or warning is received? No, if an error or warning message appears, re-submit as many times as necessary. 9. What actions should I take when an error or warning is received? Dealers should read warnings and take action based on how the current funding team responds to these items. Dealers may not be used to seeing notification messages upfront related to contract fields. Previously issues may have been waived by the region after contract submission that will now have an error or warning upfront which will need to be resolved. 10. How long are verifications valid? Verifications are valid for one calendar day but can be re-submitted for verification. 11. Can a funder respond to my inquiry about an error? The funder s advice will only be directional to the specific dealer inquiry. While the received error message is the same error a funder would see, the funder will not have seen it yet in the system. 12. What is vehicle validation? Vehicle validation verifies the type of vehicle based on the VIN (system does a search on a database site, make, trim, door styles). The system then pre-populates based on the VIN de-code section. 13. What is the difference between an error and warning? Applications may be stopped or returned if submitted with an error or warning. Applications submitted with warnings risk rejection. When a dealer receives a Verified with Warning result, the dealer can choose to either resolve the warning or move forward without resolving the warning. A contract that is verified with warnings may require a regional exception to avoid a funding delay. Warnings caution the dealer to proceed with caution. Errors are hard stops that will not allow the dealer to continue. Failed verifications that receive an error require either a change to the credit application or a change to the contract information before the customer can sign. To modify a credit application, the dealer will need to cancel the contract on the Contract Screen. 14. Where is signature information stored? Any info on the ipad or the App will be stored in the Cloud. When the deal is booked it will be removed Page 9 of 21

10 as a whole. 15. Where can the customer use the ipad to sign? Customer signing can occur anywhere in the store with Wi-Fi or cellular connection. 16. How long after the signing process has begun must it be submitted? Once signing process has begun, signing must be completed by all parties and submitted within five days. 17. What are the three post-submission statuses? The three post-submission statuses are: 'contract submitted (dealer has requested funding), contract received (the funding department has received the contract package), and booked. 18. Which devices can be used to submit and print the contract? The contract can be submitted and printed from both an ipad and a desktop computer. Customer copies should be printed and assembled before point-of-sale capture. A thumb drive can also be provided for the customer. Submitting for funding is the final step. RETAIL-SPECIFIC CONTRACTS 19. How are data entry fields completed? Most of the retail data entry fields are self-explanatory but some may require dealers to complete additional dropdowns and selections. 20. What should I fill in for the last month s payment on a retail contract? Leave this field blank. 21. Are the Total Amount Financed field and the Amount Financed field the same? Yes, these fields must be equal. 22. Which fields do I have to complete when entering down payment and trade information? If a trade is applicable, enter the Gross Allowance and Amount Owing. Enter the Lien Holder if there is an Amount Owing. Leave the Rebate and Other Down Payment fields blank. 23. How do I add insurance products? Use the dropdown to add insurance products as required. 24. What products need to be disclosed in icontracting? Any product disclosed on the contract needs to be in this section. 25. Where do I enter fees if the fee is not listed? For any fee that is not listed, click Add Additional Fee and select it. If there is a Paid To box, select the appropriate item accordingly. LEASE- SPECIFIC CONTRACTS 26. How do I enter residualized hard adds for icontracting? If there are residualized hard adds, click edit and select hard adds from the dropdown. The dollar amount will fill in automatically from the system. Click Save when you have finished adding all of your hard adds. Do not use the Capitalized Hard Adds edit function and include in the Cash Price instead. 27. What does Miles at Inception mean? Miles at Inception means the current miles on the vehicle at the time the lease is being contracted. 28. How do I know the Inception Rate? Inception rate is always 0 unless there is over 200 miles on the vehicle. Enter 0.10 if there are 200 miles Page 10 of 21

11 or more at inception. 29. How do I enter mileage for a lease in the icontracting data entry fields? In the annual miles field, select annual lease miles. If purchasing over 15,000 miles/year, enter total excess miles purchased over total lease term in the Excess Miles Purchased field (i.e. 18,000/year is 3,000 x 3 years = 9,000). The Excess Mile Rate field should be left blank unless there is entry in the field for Excess Miles Purchased. In the case where excess miles have been purchased, 0.10 should be entered in the Excess Mile Rate field. 30. What does the Additional Advance field require? Nothing, leave this field blank. 31. What is the Cash Price? Cash Price is also known as the Agreed Upon Value shown in the dealer s DMS. 32. How do I enter all of the fields in Capitalized Cost Reduction? Total Cash Down Payment includes all of the cash paid out of pocket by the customer. Enter dealer contribution into the Rebate field, if applicable. For Flex Cash, select the appropriate Flex Cash program and enter the claimed amount. Amount Paid in Cash is the cash capital cost reduction provided by the lessee (the customer). Also include the Sales Tax on Amount Paid in Cash if applicable. Trade equity is entered in the Credit for Net Trade-in Allowance field. Similar to Amount Paid in Cash, enter Sales Tax on Trade Equity in the Sales Tax Credit for Net Trade-in Allowance field. 33. Why do I get an error message related to the Amount Paid at Signing? An error message may come up related to this field until the document is fully completed. 34. What can I do to make the calculated monthly payment and the monthly payment from my DMS match if they do not? Enter the Lease Money Factor including rate participation (if applicable on rate participation). The Base Money Factor should be entered excluding rate participation. The next payment date should occur days from the current date. Verify the Turn In (Disposition) Fee, Security Deposit, and Term. 35. When does the Use Tax Percentage field get used in the Payment section? The Use Tax Percentage field is used to enter the applicable monthly sales/use tax rate. If the taxes are paid upfront or capitalized, then leave this field blank. In the next section, make sure to remain consistent and enter Capitalized Sales Tax in the appropriate field (if taxes are capitalized) or Upfront Sales Tax (if taxes are paid at signing). 36. What is entered in the Property Tax field? When applicable the Property Tax field is used to enter the estimated property tax amount. The amount can be found in the Estimated Fees & Taxes field disclosed on the contract. Property tax is not to be paid at signing. 37. How do I add Other Taxes? The Other Taxes fields are reached by clicking edit in the Taxes section. Other Taxes includes the Tire Tax, Warranty Tax, Capitalized Cost Reduction Tax, Documentation Fee Tax and Acquisition Tax. These fields allow clicking and editing the appropriate field for relevant taxes. Make sure to correctly select upfront or capitalized or calculations will not balance. 38. Why do I get an error message with the Monthly Payment section? The Monthly Payment will get an error message until the document is fully completed. 39. How do I add Fees? Click edit and select appropriate field for any other relevant fees to be paid. Make sure to correctly select upfront or capitalized or calculations will not balance. 40. How do I add insurance products? Use the dropdown menu to select any additional products and enter the cost. Page 11 of 21

12 VII. AHFC Electronic Contracting MANAGING ERRORS AND WARNINGS 41. How do I resolve a situation where my participation exceeds the maximum spread allowed? In the Finance section of the Contract tab, the buy rate including modifiers should be verified and the client rate within the allowable spread should be adjusted. Then as a final step adjust the Finance Charge and Monthly Payment field. 42. What happens when the contract rate is greater than the maximum allowed? In the Finance section of the Contract tab, the dealer should verify the buy rate including modifiers, and adjust the client rate accordingly. Then as a final step adjust the Finance Charge and Monthly Payment field. 43. Is there a way to resolve a mismatched contract model ID and approved model ID? Update the Vehicle section of the Contract tab with the approved model ID or cancel the contract; then edit the Credit Application to correct the model ID and submit for new approval. 44. Is there a way to resolve a mismatched contract term and approved contract term? Update the Finance section of the Contract tab with the approved term or cancel the contract; then edit the Credit Application to correct the term and submit for new approval. 45. How do I fix a contract if the name and address on the contract does not match the application? You should review the credit application client information and compare it with contract. If the credit application and contract match according to AHFC guidelines, it is okay to submit the contract for funding. If the documents mismatch, you should cancel the contract and resubmit the application with appropriate edits. Then restart the contract. 46. How do I resolve a situation where the Advance exceeds approval? Adjust the selling price or down payment in the Finance section of the Contract tab. 47. How can I resolve a service contract that is over Advance? In the Finance section of the Contract tab, correct the service contract amount, then adjust the Amount Financed, Finance Charge, and Monthly Payment field. 48. Is there a way to correct a contract where a warning is received for being over residual? In the Finance section of the Contract tab, verify the correct residual percentage used and any residual adjustments, then correct corresponding fields. 49. Where do I find a flex claim if not found in performance center? You will need to go back to the performance center and file the appropriate claim. 50. How do I correct a contract where the payment exceeds the approved max payment amount? In the Finance section of the Contract tab, adjust the selling price or down payment to bring the payment within approval, then adjust the Amount Financed, Finance Charge, and Monthly Payment field. VIII. OTHER CONTRACT MANAGEMENT CANCELING, PRINTING 51. What can I use POS capture for versus esign? The contract, credit app, Honda Care and Acura Care products, and agreement to furnish insurance are always available electronically. Any title or registrations should be loaded via POS capture. Additional AHFC forms may be available for esigning on a state by state basis. 52. Can I cancel a contract before it s submitted for funding? Yes, follow the steps outlined below to cancel a contract: Page 12 of 21

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14 53. Can I cancel a contract after it is submitted for funding? Yes. To cancel a contract after it is submitted for funding but has not been booked, contact the Funding department and request a Return status. Once a Return status is received, go to the My Deals page cancel the contract as you did above. 54. How do I print the client copy of signed contract documents from a desktop? Page 14 of 21

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16 55. How do I print the client copy from the ipad of a signed contract documents from the ipad? Page 16 of 21

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18 IX. ASSIGNING PERMISSIONS 56. How do I set up permissions for individual users at the dealership to use digital contracting? NOTE: Only the ideal System Admin can grant user permissions to dealer users. Page 18 of 21

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