Upcoming changes to the NIDPP, effective June 1, 2023
As you know, the No Interest Deferred Payment Plan (NIDPP) is a valuable program that ensures customers can enjoy the protection offered by F&I products, even when it hasn’t been budgeted for or they’re unable to roll the cost into their primary financing solution.
Finding the right offer to support your customers in being protected while ensuring the sustainability of the program has always been a complex exercise. So that we can continue to provide an additional financing option to your customers for years to come, we are introducing some changes to the program.
What’s changing
On June 1, 2023, the following changes will come into effect:
- The NIDPP dealer fee is increasing to $495
- The customer down payment requirement is increasing to 15%
Program benefits for customers and dealers
Here’s a reminder of some of the ways in which the NIDPP is beneficial for customers:
1. Accessibility: The NIDPP can bridge the gap between a customer’s financial limit (personal budget, lender limit, etc.) and the additional cost of the F&I contract. This makes F&I products more accessible, ensuring that more customers can benefit from the peace of mind the products offer.
2. Affordability: With no qualification or approval process required, all customers are pre-approved at 0% interest, making the NIDPP a very attractive and affordable plan.
3. Convenience: The NIDPP is easy to propose and can be administered quickly, as there is no additional paperwork to complete or time-consuming lender approval needed, which could delay the process.
On top of this, dealers benefit from:
1. Sales opportunities: By making F&I products more accessible to more customers, dealers benefit from increased sales opportunities and commissions. There is an additional cross-selling opportunity for customers who are near the expiry term of their original manufacturer’s warranty and have decided to keep their vehicle.
2. Customer engagement and retention: The NIDPP supports dealers in building strong relationships with their customers, which leads to increased customer retention and loyalty.
The NIDPP FAQ
Our detailed NIDPP FAQ is a useful resource to refer to if you have any questions on the program, including queries relating to program terms, eligibility requirements, revised cancellation charge back methodology and more.
If you have any questions about these changes or the program in general, please get in touch with your LGM Dealer Development Manager.