Financing

Configure financing and lease options

When a buyer finances their purchase, DealerSpot tracks all the details of the financing arrangement.

Purchase Methods

Cash

No additional financing fields needed. The buyer pays the full amount at time of sale.

Finance Internal

Dealer-provided financing (Buy Here Pay Here). You are the lienholder.

Finance External

Third-party lender financing. A bank, credit union, or finance company provides the loan.

Lease

Leasing arrangement with monthly payments and return/buyout options.

Financing Fields

When the purchase method is Finance Internal or Finance External, these fields become available:

Loan Terms

FieldDescription
APRAnnual Percentage Rate
Down PaymentAmount paid upfront
Finance ChargeTotal interest over loan term
Number of PaymentsTotal payment count
Payment AmountRegular payment amount
Payment FrequencyWeekly, Bi-weekly, Monthly
First Payment DateWhen payments begin
Final Payment AmountLast payment (if different)

APR Calculation

APR (Annual Percentage Rate) represents the yearly cost of borrowing, including interest and fees. DealerSpot uses the standard APR calculation:

APR = ((Finance Charge / Amount Financed) / Number of Payments) × 12 × 100

Where:

  • Amount Financed = Sale Price - Down Payment
  • Finance Charge = (Payment Amount × Number of Payments) - Amount Financed

Late Charges

FieldDescription
Late Charge DaysDays after due date before late fee applies
Late Charge AmountFee per day past due

Lienholder Information

Primary Lienholder

FieldDescription
Lienholder NameFinancial institution name
Lienholder AddressMailing address

For internal financing, this is typically your dealership.

Second Lienholder

If there's a secondary lien:

FieldDescription
Second Lienholder NameInstitution name
Second Lienholder AddressMailing address

External Lender

For external financing:

FieldDescription
External Lender NameBank or finance company name

This is the entity providing the loan, which may differ from the lienholder.

Lease Specifics

Leasing uses the same payment structure but typically includes:

  • Lower monthly payments than financing
  • Mileage limits
  • End-of-lease options (return, buy out, or lease new)

Track lease-specific terms in the notes or custom fields.

Example: Internal Financing

A $25,000 vehicle with internal financing:

FieldValue
Sale Price$25,000
Down Payment$5,000
APR8.9%
Number of Payments48
Payment Amount$497.25
Payment FrequencyMonthly
Finance Charge$3,868

Amount Financed: $20,000

Example: External Financing

A $35,000 vehicle financed through a bank:

FieldValue
Sale Price$35,000
Down Payment$7,000
External LenderFirst National Bank
APR5.9%
Number of Payments60
LienholderFirst National Bank

Tips

  • Always verify APR calculations meet state requirements
  • Document all financing terms clearly
  • For external financing, wait for lender approval before completing the sale
  • Keep copies of all financing documents

Next Steps

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