Risk Factor Disclaimer
AutoPlus Financial - "NO FINE PRINT"
Disclosure/Risk factors: Floor Planning
This disclosure is written in a down to earth common sense, easy to understand way with real English so anyone will comprehend and fully understand the risk factors associated with this website and the company AutoPlus Financial (APF).
First, you are “investing” in your company not AutoPlus Financial. Your company is then making a loan to APF. That; or those loans are backed by hard assets, either a car or a lease contract which includes a car. The money you invest in your company remains in your bank account (many people use their credit union) until such time you are asked to make a loan to AutoPlus Financial. At that time, if you prefer you can write a check to AutoPlus Financial in exchange for the promissory note from APF with the vehicle number or the lease agreement. Once you make that loan, your funds are at risk. However, your risk is minimal. Your funds are protected by one of two physical items as collateral. If the money you loaned was for a “floor Plan” car, the car itself (including the Vehicle Identification Number) is the collateral protecting your loan. The car at all times remains on the lot available for physical view by you the lender. The risk would be if the dealer sold the car, did not payoff AutoPlus Financial and AutoPlus Financial did not pay you. That risk is controlled by APF for you by doing a physical inspection of the cars one to two times per month. APF and the dealer are both responsible for repayment of your money. When your money is repaid to you the fee associated with that one loan is paid to you at that time. The funds are again in your possession and the risk is now ended on that one car. You would NOT be under any obligation to make any further or future loans if you choose.
Both the dealer and APF guarantee you your money. APF and the dealer have insurance and a bond as part of their state licensing application and that insurance and bond also protects you from any type of fraud or theft.
There is a risk. However, as compared to the risk associated with other investments, the risk is minimal, but you need to be told there is a risk.
Disclosure: Risk Factors: Lease Funding
One of the facts that make the risk minimal is this; at any time with a 30 day notice you can end the loan, the dealer will either wholesale the car or floor plan the car with another company and you can have your money returned. In this case there is no fee paid, just the interest on the days the funds were being used by the dealer and APF.
The longer term lease agreement is pretty much locked in for the 36 month period of time, however, your risk is being reduced each month as you receive both “principal and interest” on the amount you funded for the lease. By the end of the 36th month you have received all your interest and almost 100% of your principal. After month 37th you will have received all your funds plus your bonus money completing the entire transaction and reduced your risk to zero.
The monthly reports sent to you indicate the status of each loan, the amount of interest you have earned on each lease you funded. These reports clearly will show the reduction in your risk as time moves forward.
As it relates to floor planning cars, you will have in your possession the note on the car and you will be sent a statement showing you the car note was paid and the interest earned. As long as the car is physically on the lot, your risk is minimal. All cars, both leased and floor planned are insured for physical loss and damage.
In the presentation there are some forward looking statements and some assumptions made on the amount of time and funds you loan to APF. However, the fees associated with the loans as well as the interest are not estimates but real numbers based on the time element used in the presentation. It is important to understand, no matter how many days the car is on a floor plan, the minute it is paid off, you receive your fees. Buying another car simply keeps the funds working for you on a steady basis.
Any question(s) regarding risk can be directed to:
Ms. D. Saxton
1535 N. Leroy Street Suite: B
Fenton, MI 48430
You can also Click Here to contact us via email.