Vendor Subsidy
Each item of equipment set up in AFQS Configuration can have a vendor
subsidy program associated with it. Unlike the dealer subsidy
entered by the user manually, the vendor subsidy is calculated based on
the program parameters for the selected item of equipment with the results
hidden from the user, if necessary.
The vendor subsidy program consists of the following parameters:
- Subsidised amount per $1,000 of either equipment cost (if «cost
based» parameter is selected) or amount financed
- Subsidy limit as amount and as percentage of cost (if both are specified,
the minimum of the two applies)
- Minimum rate to customer
- Subsidy start and end dates
- Cost of Funds term (in months)
- Discount rate (used to quote on if the subsidy limit has not been exceeded
and the quote term equals the COF term; otherwise, the normal rate applies)
- Whether the GST component of equipment cost / amount financed is subsidised
- Whether subsidy is calculated based on equipment cost or amount financed
- Whether subsidy is fixed (if selected, the minimum customer rate is
achieved by increasing the margin where the original subsidy amount will
produce a lower-than-minimum customer rate; otherwise, the minimum customer
rate is achieved by reducing the amount of subsidy)
Equipment items with vendor subsidy programs must be always quoted
separately, i.e. they cannot be used in multi-asset quotes. However, it is
possible to quote both vendor subsidy and dealer subsidy on one
item of equipment at the same time.
See also:
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