Question
How to add FDA- Finance Deposit Allowance/ Finance Deposit Contribution?
Answer
A finance deposit contribution is a discount that can be offered by either car manufacturers or dealers to customers who take out specific finance products to buy their cars. This is nearly always only available to customers who buy the vehicle on finance.
How does it work?
If you take up the offer of a deposit contribution, a specified amount of money will be added to your deposit to reduce the overall cost of the finance and therefore the vehicle.
So, for example if you put down a £2000 deposit the deposit contribution maybe £1000 so the total deposit for the vehicle would be £3000. The price of the vehicle will stay the same however it is a contribution for your finance so essentially the owner would be paying less a month as the deposit contribution will be bigger.
The finance contribution is set up as a negative payment (as shown above) as it is essentially taking away from the cost of the vehicle. It will be set up as a Post Tax item as the dealer themselves will offer the contribution so it will be coming from their profit margin with tax already included in that contribution. This FDA will in turn reduce the total amount on the invoice.
During the Customer Order process the FDA would be added in the Post-Tax items tab, by clicking on that tab a pop up will display showing the below:
From here we are able to enter the amount of the contribution to be posted against the vehicle, the amount would be entered as a minus figure as it is reducing the total invoice price for the car.