Finance Institutions

Location

SETTINGS > Fleet Setup

Purpose

Use this menu item to define finance institutions (Bank ID’s) associated with the financing of your vehicles. Defining bank IDs allows you to accurately track all the financial institutions associated with vehicle transactions such as acquisitions, sales, and depreciation.

Fields

Bank ID – Enter a unique code for the finance institution.

Description – Enter a description for this finance institution.

Default Interest Rate – Enter an interest rate to be associated with this finance institution for the majority of your transactions.

Finance Type – Select the type that best describes the financing provided by this finance institution.

• Loan – Generally for vehicles that are owned and will be depreciated. This is done to reduce the value of the asset and lower the book value while expensing a portion of the asset. Customer will be ultimately responsible for the disposal of the vehicle after its useful life.
• Lease – Cars that the customer does not own. They could be "program" cars which may qualify for turn-back and are sent to auction for disposal. The costs incurred with a lease are generally amortized.