Changes to NIDPP program starting December 1, 2021
During a recent review of the No Interest Deferred Payment Plan (NIDPP) we discovered that the cancellation rate of the program was unsustainable, resulting in costly chargebacks to our valued dealership partners.
In order to ensure the program is sustainable and remains market competitive for you and your customers, NIDPP will be changing as of December 1, 2021.
Below are the changes to the program effective December 1, 2021:
1. The administration fee will be adjusted as follows:
- MBP and OMM fee will increase from $250 to $295
- VLPP and AP fee will increase from $200 to $295
- PPM fee will remain the same, $50
2. A 10% down payment will be required for all purchases financed with NIDPP.
As soon as the dealer processes the purchase in HUB, LGM will charge the down payment immediately to the customer’s indicated payment method. The dealership does not need to collect any funds from the customer.
3. Payment terms will be available from 12 to 48 months (instead of 60 months).
By implementing the changes above, we hope the program will better serve your qualified customers and improve, the cancellation rates; eliminating the dealer charge backs.
If you have any questions, please contact your LGM Dealer Development Manager.