Deals & Finance Management
Structure profitable deals while maintaining OCCC compliance and customer satisfaction
Finance Overview
Finance Module Components
Deal Structuring
Building customer payment plans and calculating terms
Credit Analysis
Evaluating customer creditworthiness and risk assessment
OCCC Compliance
Following Office of Consumer Credit Commissioner guidelines
Rate Chart Management
Pricing loans according to risk and regulations
Documentation
Creating contracts, disclosures, and required paperwork
Key Finance Metrics
Pending Deals
Deals awaiting finance approval
Approval Rate
Finance approval success percentage
Average APR
Portfolio interest rate average
Portfolio Balance
Total active loan amounts
Deal Structuring
Deal Structuring Process
- 1Select vehicle and customer
Choose approved customer and desired vehicle from inventory
- 2Determine vehicle pricing
Set selling price based on cost, recon investment, and profit margin
- 3Calculate down payment
Set appropriate down payment based on risk and customer capacity
- 4Apply OCCC rate chart
Use compliant interest rate based on term and risk category
- 5Calculate payment schedule
Generate payment amounts and due dates
Deal Calculator Components
Vehicle Information
- Vehicle selection and pricing
- Trade-in value (if applicable)
- Extended warranties
- Gap insurance options
- Additional products/services
Loan Terms
- Down payment amount
- Loan term (months)
- Interest rate (APR)
- Payment frequency (weekly/bi-weekly/monthly)
- First payment date
Deal Structuring Best Practices
Structure deals with payment-to-income ratios under 20%, adequate down payments (typically 15-25%), and realistic payoff timelines to ensure customer success.
OCCC Rate Charts & Compliance
Understanding OCCC Rate Charts
The Office of Consumer Credit Commissioner (OCCC) regulates interest rates for motor vehicle retail installment contracts in Texas. Rate charts ensure compliance with state regulations.
Rate Chart Factors
- Loan term length
- Vehicle age and mileage
- Customer credit risk tier
- Down payment percentage
- Loan-to-value ratio
Maximum Rates
- New vehicles: varies by term
- Used vehicles 4 years or newer
- Used vehicles 5+ years old
- High-mileage adjustments
- Extended term limitations
Setting Up Rate Charts
- 1Navigate to Finance Settings
Access rate chart configuration in Finance module settings
- 2Define vehicle categories
Set up age/mileage brackets for rate determination
- 3Configure credit tiers
Establish risk-based pricing categories
- 4Input maximum rates
Enter OCCC-compliant rates for each category and term
- 5Test and validate
Verify calculations produce compliant results
Compliance Warning
OCCC violations can result in significant penalties and license suspension. Always ensure rate charts comply with current regulations and are updated when rules change.
Credit Analysis
Credit Evaluation Process
- 1Gather credit reports
Pull reports from all three major credit bureaus
- 2Verify income and employment
Confirm pay stubs, employment, and calculate debt-to-income ratio
- 3Assess payment history
Review auto loans, credit cards, and payment patterns
- 4Check references
Contact personal and professional references
- 5Assign risk tier
Place customer in appropriate credit risk category
Credit Risk Tiers
Prime Credit
Score 650+, stable income, clean payment history
Near Prime
Score 550-649, some credit issues, stable employment
Subprime
Score 450-549, credit challenges, higher risk
Deep Subprime
Score under 450, significant credit issues, highest risk
Creating Loans
Loan Creation Workflow
- 1Complete deal structure
Finalize all terms, rates, and payment schedule
- 2Generate contract documents
Create retail installment sales contract and disclosures
- 3Review with customer
Explain terms, payment schedule, and customer obligations
- 4Obtain signatures
Execute contract and all required disclosures
- 5Activate loan account
Create payment schedule and move to loan servicing
Down Payments
Down Payment Guidelines
Minimum Requirements
- Prime credit: 10-15% minimum
- Subprime credit: 15-25% minimum
- Deep subprime: 25%+ minimum
- High-mileage vehicles: Additional 5%
Payment Methods
- Cash (preferred)
- Certified check or money order
- Trade-in vehicle equity
- Debit card (with limits)
Down Payment Benefits
Adequate down payments reduce risk, improve collection rates, and demonstrate customer commitment. They also provide immediate cash flow and reduce loan-to-value ratios.
Insurance Requirements
Required Insurance Coverage
Mandatory Coverage
- Comprehensive and collision
- Liability (state minimums)
- Dealership listed as lienholder
- Continuous coverage required
Verification Process
- Review declarations page
- Confirm adequate coverage limits
- Verify lienholder information
- Set up lapse notifications
Deal Documentation
Required Documents
Core Contract Documents
- Retail Installment Sales Contract
- Truth in Lending Disclosure
- Buyers Guide (Used Cars)
- Vehicle Title and Assignment
Supporting Documents
- Credit application and authorization
- Income verification documents
- Insurance declarations page
- Vehicle inspection forms
Document Management
- 1Generate documents automatically
Use BHPHApp's document generation with pre-filled data
- 2Review for accuracy
Verify all information matches customer and vehicle data
- 3Obtain required signatures
Use e-signature or physical signatures as appropriate
- 4Store documents securely
Upload signed documents to customer file
- 5Provide customer copies
Give required copies to customer before delivery
Document Retention
Maintain all deal documents for the full term of the loan plus applicable statute of limitations. Digital storage with backup is recommended.
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