Agent Presentation About Universal Lenders and the ZERO Plan Strategy to Increase Dealership Profit and Agent Commission Step by Step. The ZERO Plan Process Fees and Funding Sample Transactions www.the-zero-plan.com Benefits of Being a ZERO Plan Dealer Our Commitment How to Enroll
UNIVERSAL LENDERS LLC Universal Lenders Inc. organized in 1958 and incorporated in 1994. Universal Lenders LLC created in 2010 exclusively for The ZERO Plan. Serves the automotive industry by offering zero percent financing JEFF JACOBS Owner of Universal Lenders LLC Spent over 30 years in the retail automobile industry as an owner of Jacobs Twin Auto Plaza. Jacobs Twin Auto Plaza - 6 new vehicle franchises in Chicago retailing over 5500 new and used vehicles annually. When the business and franchises were sold in 2006, created industry specific programs for the automotive industry. As a result The ZERO Plan was created for Dealers by a Dealer.
WHAT IS THE ZERO PLAN? AN ALL NEW 0% FINANCING PROGRAM FOR YOUR DEALERSHIP OBJECTIVE Increase Product Sales and Bottom Line, Not Just Replace Current 0% Providers. Drive Incremental Sales & Profits! GOALS Increase the Products Eligible for 0% Financing to Increase Total Profit. Preserve Profits by Reducing Cancellations Create a Dealer Friendly Platform
GOAL NUMBER ONE Increase the Products Eligible for 0% Financing to Increase Total Profit. RESULT: INCREASED INCREMENTAL SALES & PROFITS Many F&I Ancillary Products are Now Eligible for ZERO Plan Financing. This would include Chemical Protection, Tire & Wheel Protection, etc. (No GAP)* Service Contracts and Protection Products can be bundled and financed on a single ZERO Plan Contract Everyone is Approved! Increase Penetrations of All Products on Credit Restricted Customers. No limit on Sales Price. No Limit on Dealer Profit. A True Payment Plan for CASH buyers! * CHECK THE ZERO PLAN APPROVED PRODUCT LIST TO CONFIRM ELIGIBILITY
GOAL NUMBER TWO Preserve Profits by Reducing Cancellations The ZERO Plan Boasts Cancellation Rates Under 5%! RESULT: INCREASED INCREMENTAL PROFITS Aggressive Collection Efforts Including Multiple Late Notices, Certified Cure Letter, Management Phone Calls Dealership Involvement Utilizing Our Exclusive Save A Deal Program. Lower Cancellations Result in Reduced Chargebacks. Reduced Chargebacks Result in Increased Profit and increased F&I earnings. Deliver Best in Class Customer Satisfaction
GOAL NUMBER THREE Create A Dealer Friendly Platform RESULT: The ZERO Plan Makes It Simple to Create Incremental Sales & Drive Incremental Profits ISSUE The ZERO Plan Competition Dealer Payment Within 7 Days Between 90 120 Days Dealer Fee Refund 100% Refund during first Partial refund during first 90 days 60 days Limit Dealer Profit No Limitation on Dealer Profit Limits Dealer Profit to an amount over cost Customer Payment Available ACH or Credit Card Only Option Via Statement Cancellation Rates Low Cancellation Rates Higher cancellation rates Eligible Products All F&I Ancillary Service Contract Only Products Multiple Products Finance Multiple Products Service Contract Only
HOW THE ZERO PLAN WORKS! HOW WE DIFFER FROM THE COMPETITION F&I sells vehicle product(s) and completes ZERO Plan Paperwork. Difference: No Difference to the Customer! Principle Only Payments. General Office sends Universal Lenders LLC the Funding Packet. Difference: Documents sent to VSC Administrator Creating a Middleman who then sends packet to Lender Upon receipt of the required documents, Universal Lenders LLC will pay the Dealership the Unpaid Balance Less Our Fee within 7 days. Difference: Payment between 90-120 Days (2 Payments) The Dealership follows their normal remittance process and submits payment to Administrators just like a CASH Deal. Difference: Our Competitors Requires Dealers to have Special Office Procedures for 0% Product Sales. In the event of a loan default, Universal Lenders LLC will contact the Dealership directly to request a refund. Difference: Administrator Cancels Policy with No Dealer Notice
ZERO Plan Dealer Fees Combination of Flat Fees & Percentage Fees. Percentage Fees are based on the Balance to Finance. Fees are 100% refundable in Event of Default First 60 Days Business Managers can reduce the dollar amount of their fees by securing as much down payment as possible. The unpaid balance to finance is reduced as the down payment is increased thus reducing the cost of the program.
Fee Schedule
FUNDING Requirements ZERO Plan Note & Contract ZERO Plan Addendum (Non Cancellable Products Only) ZERO Plan Payment Authorization Form Customer Copy of Drivers License One Lienholder Copy of the Policy or Product Warranty for Each Product Financed. NOTE: Each Policy or Product Warranty must include Universal Lenders LLC as the Lien Holder
Typical Transaction & Cash Flow CUSTOMER TRANSACTION: Sale Price of Service Contract $1500.00 20% Down payment Requirement $ 300.00 Unpaid Balance to Finance $1200.00 Divided by Repayment Term 12 Customer Monthly Payment $ 100.00 DEALER CASH FLOW: INFLOW(+) / OUTFLOW(-) Dealer keeps 20% down payment + $300.00 Received at time of Sale Dealer Receives Unpaid Balance from Universal + $1200.00 Received within 7 Days of Universal Receipt of Loan Docs Universal deducts Universal fee of 11% - $132.00 Dealer pays cost of Service Contract - $750.00 Dealer Profit + $618.00
Typical Cancellation Transaction EXAMPLE TRANSACTION: Sale Price of Service Contract $1500.00 Divided by Repayment Term 12 Cost of Service Contract $ 750.00 Customer Payment $100.00 20% Down payment Requirement $ 300.00 Dealer Profit (net of UL Fee) $ 618.00 Unpaid Balance to Finance $1200.00 Warranty Monthly Term 36 Canceled After 3 rd Month 6 Month Unearned Premium 92% $1380.00 83% $1245.00 Cancellation Fee ($50.00) ($50.00) Refund per VSC Policy $1330.00 $1195.00 Credit Due back from Adm. 92% ($690.00) 83% ($623.00) Customer Cancel Cost to Dealer $640.00 $572.00 Universal Requested Amount* $1000.00 $700.00 Credit Due back from ADM 92% ($690.00) 83% ($623.00) Universal Lenders Cost to Dealer $310.00 $ 77.00 * May be slightly higher due to Late Charges and Misc fees
Customer Service Refer your customers to our website to address most concerns.
Business Manager s Resources Access our website at www.the-zero-plan.com
Summary-Benefits of Being a ZERO Plan Agent Sell More Product: The ZERO Plan is Dealer Friendly! When a program is easy to use and problem free dealership employees will use the program. The result is increased sales! The ZERO Plan will finance other ancillary F&I Products.not just service contracts. Increase sales of your other products by offering a premium payment alternative to the dealership customers. Less Charge Backs: Keep more of your hard earned commissions. The ZERO Plan will deliver cancellations rates under 5%. The competition cancels at a rate of 15% or higher. This will also make your Administrators happy! Give Better Service: With a dealer friendly platform and direct access to Universal Lenders dealer issues are addressed quickly and efficiently. Earn Commission! Only the ZERO Plan pays the Agent a commission for their efforts. In most cases an Agent will earn a commission for every contract Universal purchases from a dealer the Agent enrolled. Even on products not sold by the agent! Open Doors: Agents can enroll dealers and earn commissions when the Agent does not sell that dealer any of the Agent s products. Get them using the ZERO Plan, earn some commission, earn their trust and then close them on your products!
Our Commitment The ZERO Plan will Deliver Incremental Sales & Profit to Dealers by Expanding Product Eligibility & Reducing Cancellations All While Providing a Simple to Use Platform. Increased Dealer Penetrations Mean Increased Agent Commissions. Happy Dealers Happy Agents!
Agent Enrollment Steps: 1. Execute an Agency Agreement with Universal Lenders LLC. Fax/Scan executed copies to Universal. 2. Universal Lenders LLC will deliver an Agent Resource Kit to the newly enrolled Agent within 3 Days 3. Agent can begin enrolling Dealers. Interested? Contact Jeff Jacobs at Universal Lenders LLC Today Contact Information: 866-954-1050 X 8003 jjacobs@universallenders.net www.the-zero-plan.com