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Can I calculate the dealer reserve (interest buy-down) on a 0% loan?

April 26, 2017buy-down CALCULATE Dealer loan Reserve

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Can I calculate the dealer reserve (interest buy-down) on a 0% loan?

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Yes. You can discount a 0% loan using the dealer reserve routines by either the difference in charges or present value method. If you’re a lender, you can use the new APRChecker routine in the 627B LeaseMaker to check and discount 0% loans. This allows a dealer to offer 0% loans through any lender willing to accept an interest buy-down payment. Our APRChecker PC program has also been updated to check and discount 0% loans.