General Program Guidelines

Transcription

1 General Program Guidelines Business Customer Qualifications Business customers that meet the following conditions qualify for Southeast Toyota Finance (SETF) s Business Solutions program: Credit approved by SETF. Contract originated through an eligible Toyota/Scion dealership. Financing or leasing one or more vehicles. Business is listed as the primary buyer or lessee on the contract. Business must be a valid legal entity (i.e. a corporation, sole proprietorship, limited liability company, etc.) Eligible Vehicles All vehicles are eligible for retail (New and Used, Toyota, Scion and Non-Toyota). Only new Toyota/Scion vehicles are eligible for lease. Any modification to the vehicle that voids the manufacturer s warranty is not eligible for Business Solutions program. Any vehicles used for rental, livery (i.e. limos or taxi cabs), emergency, or law enforcement cannot be leased under Business Solutions. Terms for Business Solution Contracts Lease: 24 to 48 months Retail: 12 to 63 months for commercial use vehicles (see page 11) *For non-commercial use vehicles with a personal guarantor, normal SETF finance term guidelines apply with a maximum term of 75 months. Dealer must indicate intended use of vehicle on the Release Authorization Form. The Release Authorization form is located in the Business Solution section of Dealer Daily. Toyota: Standard dealer rate participation applies. Scion: Pure Price Philosophy applies and no rate participation is allowed. Standard lease and retail advance parameters are applicable. Standard Acquisition Fee and Florida/Georgia loan processing fees are required (bump available). Any currently available special retail or lease programs may be used on Non-J units. J units are not eligible for any special rate or residual programs. Titling and Registration All retail contracts and leases (both closed end and open end) will be titled based on existing SETF titling requirements. Lienholder information will be the same as that of our consumer retail and lease products.

2 Business Solutions Products Through Business Solutions, SETF offers the following products: Retail Installment Loans Closed-End Leases Open-End Leases All Business Solutions Retail Installment Contracts are simple interest, level payment, fully amortizing contracts. Program features applicable to SETF s consumer retail installment contracts apply to Business Solutions, with the exception of available terms (term for Business Solutions contracts will be restricted to a maximum of 63 months for commercial use vehicles, see page 11). For non-commercial use vehicles with a personal guarantor, normal SETF finance term guidelines apply with a maximum term of 75 months. Dealer must indicate intended use of vehicle on the Release Authorization Form. The Release Authorization form is located in the Business Solution section of Dealer Daily. All Business Solutions Closed-End Lease agreements will be structured similar to traditional consumer closed end leases, with the exception of available terms (term for Business Solutions contracts will be restricted to a maximum of 48 months. Residuals published by SETF for consumer leasing will apply to Business Solutions Closed-End Lease, as will limitations on use, excess wear and use and excess mileage charges at termination. Based on the intended vehicle use, certain applicants will not be approved for Closed-End Leases. Business Solutions Open-End Lease agreement is a new SETF product specifically designed for business customers. Open-End Leases will closely resemble Closed-End Lease agreements, but the lessee is responsible for paying the residual at lease-end, either (a) by acquiring the vehicle by paying the dollar amount of the residual, and other amounts owed under the lease, to lessor or (b) by asking the lessor to sell the vehicle at auction and compensating the lessor for the shortfall, if any, between the dollar amount of the residual, and other amounts owed under the lease, and the net amount realized at auction. Open-End Leases will not include excess wear and use or excess mileage charges. Open-End Leases will be restricted to a maximum term of 48 months. Business Solutions Applications and Credit Lines Dealers must submit Business Solutions credit applications to SETF through DealerTrack in the same manner consumer applications are submitted. Business Solutions requires the following information to be submitted at the time of application. The amounts shown include balances currently outstanding with SETF along with the new request. Additional information may be required based on the credit worthiness of the applicant or the information contained in the Dunn & Bradstreet report.

3 Offerings/Credit Lines Up To $250,000 Applicant s trade and legal business name Federal Tax Identification Number (TIN) or, for sole proprietorships, social security number Business address Type of enterprise (Corp., LLC, sole proprietorship) Number of years in business Product information (year, make, model) Finance/Lease terms Description of vehicle use Completed and signed credit application Completed and signed Release Authorization Form (Form located in the Business Solution section of Dealer Daily) Application and Release Authorization Form must be faxed to: Bank reference including contact name and phone Comments indicating if credit line request and amount of line Consolidated billing on multiple unit offerings Offerings/Credit Lines >$250,000 Up To $400,000 Information shown above Last two year s financial statements and interim, if available (balance sheets and income statements) Prior auto experience source Offerings/Credit Lines >$400,000 Information shown above Last two year s tax returns If requested, SETF will establish Credit Lines for business customers. Availability under a credit line can be used for retail, closed-end or open-end lease financing, provided the cumulative exposure under the various products does not exceed the amount of the line. Dealership and commercial customers can apply for credit lines in advance of, or concurrent with, placing a vehicle order. Once approved, SETF will inform the dealership and the business customer of the amount of the Credit Line by fax. Once a Credit Line has been established: The dealership must still enter finance or lease applications into DealerTrack, but credit approval will be granted up to the maximum amount of the Credit Line, subject to the absence of a material adverse change in the customer s business since the granting of credit and subject to requested loans or leases complying with SETF program terms. Each application submitted must identify the obligor as a Credit Line customer. Each application submitted must identify the obligor using the exact same spelling, abbreviations, etc. used for establishing the Credit Line. Credit lines will be reviewed for renewal annually.

4 Business Solutions Master Agreements For each Business Solutions product, SETF has developed contract forms capable of documenting the lease or financing of one or multiple vehicles. These Master Agreements contain the general provisions of the retail installment agreements or leases. Vehicle specific information and lease or financing terms are included on Schedules and Exhibits to the Master Agreements. Please see below for more details on Master Agreements, Schedules and Exhibits. MASTER AGREEMENTS Master Agreements are for business customer use only. Business customers can execute Master Agreements for Retail Installment Loans, Open-End Leases and Closed-End Leases, as necessary. Multiple vehicles are added to Master Agreements by Schedules, initially upon execution of the Master Agreement and/or on a later date. Master Agreements are dealer specific; if a business customer acquires a vehicle from a dealer other than the original dealer, a new Master Agreement with the secondary dealer must be completed. New Master Agreements with the original dealer only need to be executed if information on the first Master Agreement ceases to be accurate (i.e. change in co-lessee/borrower or guarantor). The Master Agreements are in PDF format and located in the SETF bulletin section on DealerTrack as well as under the Business Solutions banner on SET Dealer Daily. The PDF document can be printed upon completion, but it cannot be saved as a document. Be certain to print a copy for your records. SCHEDULES Schedules incorporate the terms of the related Master Agreement and include the details related to specific vehicle(s) being leased or financed. Each Business Solutions product (Retail Installment Loans, Open-End Leases and Closed-End Leases) have a specific form of Schedule, and the proper combination of Schedule and Master Agreement must be used for each product type. All parties to a Master Agreement must also sign each Schedule, including the Exhibit to the Schedule. Schedules have one or more Exhibits on which vehicle and transaction details are documented. The combination of a Master Agreement, Schedule and Exhibit are designed to work together and collectively comprise the financing or lease document. Schedules and Exhibits are in PDF format and located in the SETF bulletin section on DealerTrack as well as under the Business Solutions banner on SET Dealer Daily. The PDF document can be printed upon completion, but it cannot be saved. Be certain to print a copy for your records.

5 DOCUMENT INSTRUCTIONS Locate and open the appropriate document file in the SETF bulletin section on DealerTrack or under the Business Solutions banner on SET Dealer Daily. o For a specific product type, a Master Agreement must be completed in advance of, or concurrent with, the time of the delivery of the initial vehicle(s) financed or leased pursuant to the Master Agreement. Provided the terms of the Master Agreement remain accurate, the Master Agreement does not o need to be re-executed. A Schedule specific to the applicable Master Agreement must be executed each time vehicles are delivered and financed or leased under a Master Agreement. All parties to the Master Agreement must execute Schedules to affirm their obligations. Complete all empty, transaction-specific fields on each required document. Print all necessary documents with completed fields and obtain signatures, including the signature of the guarantor (only one version of each document should be signed by the parties). Make photocopies of all necessary documents. Provide a photocopy of each necessary document to the lessee/buyer and any co-obligor or guarantor. Retain a photocopy of each necessary document for your dealership files. Send the original, fully-completed and executed copy of each necessary document to SETF for funding, except the copies of Master Agreements that will be accepted in connection with funding second and subsequent Schedules under a Master Agreement. SETF will continue to accept retail contracts and closed end leases for business customers executed on consumer-style contract forms. Heavy Usage Heavy usage vehicles, as defined below, must be financed pursuant to a Retail Installment Contract or Open-End Lease: Total anticipated mileage over life of lease > 100,000 miles. Vehicles with aftermarket modifications that involve bolting or welding to frame. Tacomas & Tundras where bed has been removed/replaced. Vehicles painted a unique color (i.e. company color). Tacomas & Tundras used in the Steel, Metal Working, Mining, Chemical, or Oil & Gas industries where truck is used as a work truck (vs. transportation truck). Plowing snow, competitive driving, racing or towing a trailer whose weight exceeds the manufacturer s recommendations for the vehicle. Hire to public, or to transport people for hire. Municipal or professional emergency or police services.

6 Open-end Lease Program Guidelines Program Parameters Program parameters are substantially similar to those of the SETF consumer Closed- End Lease, with the exception of end of term obligations. Under the Open-End Lease, business lessees enjoy the benefits and face the obligations of vehicle ownership. Terminal Rental Adjustment Clause Value (Residual Value) The contract refers to a vehicle's TRAC Value (Terminal Rental Adjustment Clause Value), which is calculated as the residual value of the vehicle. This value is adjusted to account for the vehicle s heavy-use and predicted mileage, as well as to determine the customer's purchase option amount and the residual value adjustment. The TRAC terminology is listed in the Open-End Lease Agreement and should not be confused with the Toyota vernacular for Toyota Rent-A-Car (or TRAC). For this reason, it is suggested these types of Business Solution leases be referred to as Open-End Leases. Residual Value (i.e. TRAC Value) Guidelines Subject to a minimum residual value of 20% of MSRP, the residual value is based on Standard published Closed-End Consumer residual values with the following adjustments: For Tacoma & Tundra only, without Heavy Usage: Reduce the consumer residual value by 5% ALL VEHICLES with Heavy Usage (as defined above): Reduce the consumer residual value by 10% Lease Worksheet The existing Closed-End Lease Worksheet will be used to calculate Business Solutions lease payments (both Open-End and Closed-End). Please note that Residual Value on the Worksheet is equivalent to the Terminal Rental Adjustment Clause or TRAC value listed on the Business Solutions Open-End Lease Agreement. The Worksheet must be submitted with the contract package for funding. End-of-Term Options At end-of-term, no excess mileage and/or excess wear and use charges apply. The customer s options at the end-of-term are: Purchase the vehicle at the agreed upon residual value (i.e., TRAC value). Request SETF to sell the vehicle at lease-end. If the net sales amount exceeds the residual value (i.e., TRAC value), the customer receives the surplus. If the net sales amount is below the residual value (i.e., TRAC value), the customer pays SETF the difference.

7 Closed-End Lease Program Guidelines Program Parameters Master Agreements provide the flexibility of simplifying the documentation required each time a customer requests the delivery of a vehicle, but the Business Solutions Closed-End Lease does not modify lease terms from those applicable in consumer leasing. Retail Installment Loan Guidelines Program Parameters All program parameters of the SETF consumer Retail Installment Contracts apply including, but not limited to Dealer Rate Participation (Toyota), Pure Price Philosophy (Scion) and Acquisition Fees, except terms which are limited to 63 months on commercial use vehicles, see page 11). For non-commercial use vehicles with a personal guarantor, normal SETF finance term guidelines apply up to a maximum term of 75 months. Master Agreements provide the flexibility of simplifying the documentation required each time a customer requests the delivery of a vehicle, but the Business Solutions Retail Installment Contract does not modify contract terms from those applicable to standard SETF consumer financing. Consolidated Billing If the business customer chooses, SETF will consolidate all Business Solutions retail and lease accounts onto a single monthly invoice summary. All invoices will have a payment date of the 1st or 15th of the month. Consolidated billing will not be available on any contract purchased by SETF prior to June 1, If a customer desires consolidated billing going forward, please complete a Due Date Change form found in the SETF bulletin section on DealerTrack or under the Business Solutions banner on SET Dealer Daily, indicate the desired due date (1st or 15 th ), and note "consolidated billing" on the face of the document. This form must be included with the contract package submitted for funding. Specialized Service Unit SETF has organized a special service unit to service Business Solutions contracts post funding. This group is familiar with the Business Solutions products and the needs of business customers. The unit can be contacted directly at: Business Solutions applications will be underwritten at the SETF purchase office in Deerfield Beach.