WhiteBox: Warranty Finance and Collection http://www.whiteboxco.com Integrated software and banking services for the Automotive Industry Fri, 12 Dec 2008 22:28:20 +0000 http://wordpress.org/?v=2.5.1 en http://creativecommons.org/licenses/by-nd/2.0/whiteboxcohttp://feedburner.google.com Service Contract Providers http://feedproxy.google.com/~r/whiteboxco/~3/LC9D94ePqxU/ http://www.whiteboxco.com/2008/09/10/service-contract-providers/#comments Thu, 11 Sep 2008 03:57:50 +0000 Alexander Muse http://www.whiteboxco.com/?p=42 Once you realize the extended vehicle service contact business is worth more than $10 billion it makes perfect sense why there are so many providers.  Here are just a few:

  • Resource Automotive
  • Protective
  • AUL AdministratorsThe StoneEagle Group
  • StoneEagle
  • Allstate Credit Division
  • Zurich
  • Old Republic Insured Automotive Services, Inc.
  • CNA National Warranty Corp.
  • Interstate National Dealer Services
  • First Extended Service Corp.
  • United Car Care, Inc.
  • United States Warranty
  • JM & A
  • F & I By Design
  • Reliant Automotive
  • American Financial & Automotive Services, Inc.
  • AAAAutowarranty.com
  • Bryant Group
  • DaimlerChrysler Service Contracts
  • AutoSoft NET
]]> http://www.whiteboxco.com/2008/09/10/service-contract-providers/feed/ http://www.whiteboxco.com/2008/09/10/service-contract-providers/ The vehicle service contract opportunity http://feedproxy.google.com/~r/whiteboxco/~3/WVjmpgRrPro/ http://www.whiteboxco.com/2008/09/10/the-vehicle-service-contract-opportunity/#comments Thu, 11 Sep 2008 02:59:57 +0000 Alexander Muse http://www.whiteboxco.com/?p=41 There are more than 21,500 auto dealers (new car) in the United States.  More than 40% own and operate their own extended warranty company.  There are several companies who help dealers setup and manage their warranty companies.  We work exclusive with these vehicle service contract companies.

Our program allows dealers to sell extended warranties to consumers who are unable to finance their extended warranty contracts within their standard auto finance products.  According to the National Automobiles Dealers Association consumers bought extended warranties on nearly 30% of all new vehicles and 40% of used vehicles sold last year.  The total number of extended warranties sold in the United States was in excess of 8.7 million units resulting in a $10 billion dollar market.

Historically, the average dealer could sell 5-10% more warranties if they were able to offer their customer a separate finance option.  More recently auto dealers have seen more and more finance companies refuse to finance amounts greater than the cost of the vehicle and as a result secondary finance offerings such as the ones offered by Whitebox will become more and more important to a dealers bottom line.

]]> http://www.whiteboxco.com/2008/09/10/the-vehicle-service-contract-opportunity/feed/ http://www.whiteboxco.com/2008/09/10/the-vehicle-service-contract-opportunity/ The Rule of 78s http://feedproxy.google.com/~r/whiteboxco/~3/DLuyjC1Szk4/ http://www.whiteboxco.com/2007/12/19/the-rule-of-78s/#comments Wed, 19 Dec 2007 23:16:06 +0000 Alexander Muse http://www.whiteboxco.com/2007/12/19/the-rule-of-78s/ Also known as the sum-of-the-digits method, the Rule of 78s is a term used in lending that refers to a method of yearly interest calculation. The name comes from the total number of months’ interest that is being calculated in a year (the first month is 1 month’s interest, whereas the second month contains 2 months’ interest, etc.). This is an accurate interest model only based on the assumption that the lessee pays only the amount due each month. If the lessee pays off the loan early, this method maximizes the amount paid by applying funds to interest before principal.

A simple fraction (as with 12/78) consists of a numerator (the top number, 12 in the example) and a denominator (the bottom number, 78s in the example). The denominator of a Rule of 78s’ loan is the sum of the digits, the sum of the number of monthly payments in the loan. For a 12 month loan, the sum of numbers from 1 to 12 is 78 (1 + 2 + 3 + . . . +12 = 78). For a 24 month loan, the denominator is 300. The sum of the numbers from 1 to n is given by the equation n (n+1) / 2. If n were 24, the sum of the numbers from 1 to 24 is 24 (24+1) / 2 = 12 x 25 = 300, which is the loan’s denominator, D.

For a 12 month loan, 12/78s of the finance charge is assessed as the first month’s portion of the finance charge, 11/78s of the finance charge is assessed as the second month’s portion of the finance charge and so on until the 12th month at which time 1/78s of the finance charge is assessed as that month’s portion of the finance charge. Following the same pattern, 24/300 of the finance charge is assessed as the first month’s portion of a 24 month precomputed loan.
Formula for calculating the unearned interest:

u = f X k(k+1)/n(n+1) u = unearned interest; f = total agreed finance charges; k = number of months paying off early; n = total term of loan in months

]]> http://www.whiteboxco.com/2007/12/19/the-rule-of-78s/feed/ http://www.whiteboxco.com/2007/12/19/the-rule-of-78s/ Four Part Carbonless Contracts? http://feedproxy.google.com/~r/whiteboxco/~3/LPevO1qOBXo/ http://www.whiteboxco.com/2007/10/16/hello-world/#comments Tue, 16 Oct 2007 17:27:32 +0000 admin http://blog.whiteboxco.com/?p=1 The image “http://www.printingblue.com/newimages/main_carbonlessForms3.gif” cannot be displayed, because it contains errors.Would you believe that most automotive warranty products require 4-part carbonless contracts?  Our electronic contract system eliminates the need for paper contracts.  Why is this good?  First, our automated form completion software reduces possible contractual errors.  Second, by collecting signature electronically we can instantaneously process orders delivering results to the warranty provider, warranty service company, automotive dealer, sales agent and the consumer immediately.

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