The ACV Capital team is continuing to expand our offerings and provide our dealer partners with world class service. To that end, there are three important updates that our partners must be aware of.
1. Daily Fee Option for 60+30 day term
First, we are excited to announce that we will now have a Daily Fee option for the 60+30 day term.
The 60+30 day term that you’re familiar with, has a flat fee for the first 60 days and an additional +30 day extension fee on day 61. This works great for some of our dealers but has been a pain point for others who do not need the full +30 day extension.
We have enhanced our 60 Day Plus product to now offer a60+Daily Fee which allows you to pay a daily fee for each additional day beyond 60 rather than pay for the full additional 30 days.
Please note that the new 60 Day Plus Product will still have the same flat fee for the first 60 days of the term and the max term continues to be 90 days. We’re excited to bring you this product enhancement!
ACTION REQUIRED: If you would like to adjust to the 60+Daily Fee Option, please complete THIS FORM. If you would like to keep the 60+30 Day Flat Fee, no action is required. Updated floorplan fees reflecting both the Flat Fee and the Daily Fee option can be found below.
2. Non-Compliance Fee Update
Second, we are committed to transparency and maintaining the no-hidden fees approach with your ACV Capital Floorplan where you know the cost of flooring your vehicle upfront, with no hidden title, audit, curtailment or Fed-Ex fees. However, we will be introducing the below fees for Non-Compliance.
ACV Capital Non-Compliance Fees - effective as of May 1, 2022
Fee Details
- Non-Sufficient Funds / Re-processing Fee: A fee will be assessed if payment is returned due to insufficient or lack of funds needed to cover the transaction and/or if ACV Capital needs to re-process a payment.
- SOT Fee: A vehicle is considered Sold Out of Trust (SOT) when it has been sold (retail or wholesale) and the ACV Capital Floorplan invoice has not been paid within the allotted threshold of either: 5 business days if outside financing was used, or 2 business days from the sale date if the payment method was cash.
- Unverified Fee: A fee will be assessed if a vehicle was unable to be verified at time of audit and the request to the dealer to clear the audit is unsatisfied after 2 business days.
3. Update to Floorplan Fees
Third, ACV Capital will be making a slight increase to our floorplan fees to account for the recent adjustment in the federal funds rate.
Why is the federal interest rate changing?
The federal funds rate guides the rates that financial institutions pay to borrow money. As a result, these changes influence the pricing offered by lending institutions. Our goal is to offer competitive floorplan fees while considering the federal funds rate. Based on current guidance we expect to see additional federal funds rate increases throughout the year; we will continue to evaluate and adjust appropriately.
See below for the updated floorplan fees. For dealers interested in the New 60+DailyFee, you will see a comparison of the Daily Fee and the existing Flat Fee for the +30 Day Extension Options. If you would like to adjust to the 60+Daily Fee Option, please complete THIS FORM.
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Helping your business succeed in this competitive market is our top priority. Please don't hesitate to contact us if you have any questions or issues via the following:
ACV Capital Operations
Email: acvadvance@acvauctions.com
Phone: (716) 235-3883
