United Auto Credit Rules! Trivia Questions Quiz
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What ancillary products does UAC offer its dealers?
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GAP
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VSC's
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Credit Life and Disability
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All of the above
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A and B only
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Explore the specifics of United Auto Credit's offerings through this trivia quiz! Learn about ancillary products, maximum GAP advances, and guidelines on advances for warranties and services. Perfect for dealers and finance professionals in the auto industry.
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- 2.
What is the maximum GAP advance in most states?
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5% of LTV but not to exceed 15% LTV
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$495
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$595
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$695
Correct Answer
A. $595Explanation
The maximum GAP advance in most states is $595. This means that the lender can provide a loan that is 5% of the Loan-to-Value (LTV) ratio, but it cannot exceed 15% of the LTV. Therefore, if the LTV is $10,000, the maximum GAP advance would be $595.Rate this question:
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- 3.
Why do we sell ancillary products?
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Product's commission/markup on the sale of the product.
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Interest income on the additional amount financed.
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Income from finance contracts captured because the addition of the product made the dealer more money than could be earned with our competitors.
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All of the above.
Correct Answer
A. All of the above.Explanation
We sell ancillary products for multiple reasons. Firstly, by adding a commission or markup on the sale of the product, we can generate additional income. Secondly, we can earn interest income on the additional amount financed when customers choose to include these products in their financing contracts. Lastly, selling ancillary products can increase our income from finance contracts, as it allows us to make more money compared to our competitors. Therefore, all of the given options are valid reasons for selling ancillary products.Rate this question:
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- 4.
What is the maximum advance guideline on a UAC VSC?
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Full stated retail.
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50% of stated retail above maximum LTV.
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$500 above the maximum advance.
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There is not a maximum advance
Correct Answer
A. 50% of stated retail above maximum LTV.Explanation
The correct answer is 50% of stated retail above maximum LTV. This means that the maximum advance guideline on a UAC VSC is 50% of the stated retail value of the vehicle, as long as it does not exceed the maximum loan-to-value (LTV) ratio. If the stated retail value is higher than the maximum LTV, then the maximum advance can be 50% above the maximum LTV. This guideline ensures that the loan amount is within a reasonable range based on the value of the vehicle.Rate this question:
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- 5.
What is the standard advance on non-UAC warranties?
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Up to $595
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$500 over LTV
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50% of warranty retail price
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$0
Correct Answer
A. $0Explanation
The standard advance on non-UAC warranties is $0. This means that no money is provided upfront for non-UAC warranties.Rate this question:
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- 6.
What is the standard advance on non-UAC GAP?
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Up to $595
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$500 over LTV
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50% of warranty retail price
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$0
Correct Answer
A. $0Explanation
The standard advance on non-UAC GAP is $0. This means that there is no additional amount provided for non-UAC GAP coverage.Rate this question:
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- 7.
What is most important in determining customer eligibility for financing of ancillary products?
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LTV
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UAC profit
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PTI
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DTI
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Dealer Profit
Correct Answer
A. PTIExplanation
PTI, or Payment-to-Income ratio, is the most important factor in determining customer eligibility for financing of ancillary products. PTI measures the percentage of a customer's income that goes towards their monthly debt payments. A lower PTI indicates that the customer has a lower debt burden and is more likely to be eligible for financing. This is crucial in determining whether the customer can afford additional financial obligations, such as financing ancillary products. The other options, such as LTV (Loan-to-Value ratio), UAC profit, DTI (Debt-to-Income ratio), and Dealer Profit, may also be important factors in financing decisions, but PTI is specifically mentioned as the most important in this context.Rate this question:
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- 8.
When selling UAC GAP and/or Warranty, what is the main selling point for charging a dealer a discount on these products?
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Dealer is not subject to charge backs on cancellations
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Chargebacks cannot exceed $1,000
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Dealer cannot cancel
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All of the above
Correct Answer
A. Dealer is not subject to charge backs on cancellationsExplanation
The main selling point for charging a dealer a discount on UAC GAP and/or Warranty products is that the dealer is not subject to charge backs on cancellations. This means that if a customer cancels their purchase of the product, the dealer will not be financially penalized or have to repay any commission earned from the sale. This can provide a sense of security and financial stability for the dealer.Rate this question:
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- 9.
An "A" program transaction is presented to you. The dealer sold GAP for $595, and the amount financed is $12,500. What is the maximum net check to the dealer based on the information provided?
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$11,250
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$11,055
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$10,055
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$10,760
Correct Answer
A. $10,760Explanation
The maximum net check to the dealer can be calculated by subtracting the amount financed from the price of the GAP. Therefore, the correct answer is $10,760.Rate this question:
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- 10.
On a UAC contract, dealers can decide whether to sell our ancillary products or any other competitor's product?
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True
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False
Correct Answer
A. FalseExplanation
Dealers on a UAC contract do not have the freedom to choose whether to sell ancillary products or any competitor's products. The UAC contract typically involves an agreement between the dealer and the company, which outlines the specific products and services that the dealer is authorized to sell. Therefore, the statement "dealers can decide whether to sell our ancillary products or any other competitor's product" is false.Rate this question:
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- 11.
What is the maximum insurance deductible allowed by United Auto Credit?
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$0
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$500
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$1,000
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$2,000
Correct Answer
A. $1,000Explanation
The maximum insurance deductible allowed by United Auto Credit is $1,000. This means that if a customer has to make an insurance claim, they will be responsible for paying up to $1,000 before the insurance coverage kicks in. Any amount above $1,000 will be covered by the insurance company.Rate this question:
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- 12.
When should you and the dealer begin to prepare for the dealer's launch?
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When the dealer agreement has been signed.
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Prior to the first visit after the dealer agreement has been approved.
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The date of your launch.
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48 hours after submission of the dealer agreement.
Correct Answer
A. When the dealer agreement has been signed.Explanation
The correct answer is "When the dealer agreement has been signed." This is because the dealer agreement is a formal contract that outlines the terms and conditions between the dealer and the company. Once the agreement has been signed, it indicates that both parties have agreed to the terms and are ready to move forward with the dealer's launch. Therefore, it is the appropriate time for both the dealer and the company to begin preparing for the launch.Rate this question:
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- 13.
What part of the dealer agreement should you review again after the dealer has been approved?
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No need to review anything again.
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Compliance issues.
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Fees
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Funding obligations.
Correct Answer
A. Compliance issues.Explanation
After the dealer has been approved, it is important to review the compliance issues mentioned in the dealer agreement again. This is necessary to ensure that the dealer is adhering to all the rules, regulations, and legal requirements set forth in the agreement. By reviewing the compliance issues, any potential violations or discrepancies can be identified and addressed promptly, minimizing the risk of legal and financial consequences.Rate this question:
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- 14.
How many visits should it take you to properly launch a store?
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It varies from store to store
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One
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Two
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Three
Correct Answer
A. TwoExplanation
The correct answer is "Two" because launching a store typically involves two visits. The first visit is to assess the location, gather necessary information, and make initial preparations. The second visit is to finalize the setup, stock the store, and ensure everything is ready for the launch. However, it is important to note that the number of visits may vary depending on the specific requirements and complexity of each store.Rate this question:
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- 15.
How many days should you wait after the launch before you can expect any applications?
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0
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1
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2
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It's a process and depends on the store.
Correct Answer
A. 0Explanation
The correct answer is 0 because the question is asking how many days you should wait after the launch before you can expect any applications. Since the answer is 0, it means that you can expect applications immediately after the launch.Rate this question:
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- 16.
When submitting a completed GAP agreement form to our marketing department, where should the form be sent to?
Explanation
The correct answer is "[email protected]". This is the email address where the completed GAP agreement form should be sent to the marketing department.Rate this question:
- 17.
How long should you wait after the initial launch before you require funding packages from a dealer?
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Shouldn't wait at all
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Depends on the store
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1 day
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2 days
Correct Answer
A. Shouldn't wait at allExplanation
The correct answer is "Shouldn't wait at all." This means that after the initial launch, there is no need to wait before requiring funding packages from a dealer. It implies that immediate action should be taken to secure funding, indicating the importance of being proactive in seeking financial support for the venture.Rate this question:
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- 18.
When submitting a completed warranty agreement form to our marketing department, where should you send the forms to?
Explanation
The correct answer is [email protected] because it is the email address specified for submitting completed warranty agreement forms to the marketing department.Rate this question:
- 19.
When are ancillary product commissions paid?
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As the products are sold - we get a separate check
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Bi-monthly
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Monthly
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Quarterly
Correct Answer
A. QuarterlyExplanation
Ancillary product commissions are paid on a quarterly basis. This means that the commissions for these additional products are calculated and paid every three months. Instead of receiving a check every time a product is sold, the commissions are accumulated over the course of the quarter and then paid out in a lump sum. This payment schedule allows for better tracking and management of commissions and ensures that they are paid out consistently and in a timely manner.Rate this question:
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- 20.
What is the expectation and most important in visit two of the launch?
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Fortifying our long term relationship.
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Put deals together and leave with a funding package.
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Stay with the plan and complete the day two agenda.
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All of the above.
Correct Answer
A. Put deals together and leave with a funding package.Explanation
The correct answer is "Put deals together and leave with a funding package." This answer suggests that the expectation and most important aspect of visit two of the launch is to finalize business deals and secure funding. It implies that the purpose of the visit is to achieve concrete results and make progress in terms of financial support and partnerships. Fortifying the long-term relationship and staying with the plan are also important, but the focus here is on the tangible outcome of securing deals and funding.Rate this question:
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- 21.
At the end of day two, what should you have?
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A newly built friendship.
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A stronger relationship with the Finance Manager.
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Approval from everyone in the dealership.
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Referrals.
Correct Answer
A. Referrals.Explanation
At the end of day two, you should have referrals. This suggests that the question is related to a sales or business context. Referrals are a valuable outcome in sales as they represent potential new customers who have been recommended by existing customers. Building a network of referrals is essential for business growth and success. The other options, such as a newly built friendship or a stronger relationship with the Finance Manager, may be important but are not directly related to the sales aspect of the question.Rate this question:
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- 22.
When training a dealer during the launch phase, your job is to do what?
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Make sure the dealer has a clear understanding of each and every underwriting guideline we review.
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Make sure the dealer has a fundamental understanding of our products.
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Encourage shot-gunning.
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All of the above.
Correct Answer
A. Make sure the dealer has a fundamental understanding of our products.Explanation
During the launch phase, when training a dealer, the main objective is to ensure that the dealer has a solid understanding of the company's products. This is crucial for them to effectively promote and sell the products to customers. While it is also important for the dealer to understand underwriting guidelines, this may not be the primary focus during the launch phase. Encouraging shot-gunning, which refers to indiscriminate or random selling, is not a recommended approach. Therefore, the correct answer is to make sure the dealer has a fundamental understanding of the products.Rate this question:
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- 23.
What are the guidelines for Dealer Track?
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10:1 app to funding ratio.
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15:1 app to funding ratio.
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If the dealer has a 20-1 Look to Book ratio in consecutive months he will lose the ability for send apps via DT.
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There are none
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A and C
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A and B
Correct Answer
A. If the dealer has a 20-1 Look to Book ratio in consecutive months he will lose the ability for send apps via DT.Explanation
The correct answer is "If the dealer has a 20-1 Look to Book ratio in consecutive months he will lose the ability for send apps via DT." This answer is based on the information provided in the question. It states that if the dealer has a 20-1 Look to Book ratio in consecutive months, they will lose the ability to send apps via Dealer Track (DT). This implies that there are specific guidelines for Dealer Track, and one of them is related to the Look to Book ratio.Rate this question:
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- 24.
Where do you send Dealer Track submissions to?
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Your divisional manager
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Megan Hyde - [email protected]
Explanation
The correct answer is [email protected]. This email address is specified as the designated recipient for Dealer Track submissions.Rate this question:
- 25.
What is the first step in approaching a dealer about his production?
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Have the dealer acknowledge our present production.
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Gather as much information about the dealer and present production with UAC (or lack there of)
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Hold a meeting with both, the finance manager and the owner, to discuss our future as a funding source.
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Shut down the dealer from Dealer Track
Correct Answer
A. Gather as much information about the dealer and present production with UAC (or lack there of)Explanation
The first step in approaching a dealer about his production is to gather as much information about the dealer and present production with UAC (or lack thereof). This step is important because it allows us to have a clear understanding of the dealer's current production and any potential issues or challenges they may be facing. By gathering this information, we can then have a more informed and productive discussion with the dealer about their production and how we can potentially work together.Rate this question:
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- 26.
When a dealer begins to dismiss or disparage UAC as a lender, what should you do?
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Repeat each concern so they know that you acknowledge and validate their concerns
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Show the dealer how they are losing money by not using us.
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Show the dealer what you did and how you helped him/her.
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Go to the owner and tell him/her how they're losing money. Explain that you want to help, but the finance manager won't listen.
Correct Answer
A. Repeat each concern so they know that you acknowledge and validate their concernsExplanation
When a dealer begins to dismiss or disparage UAC as a lender, it is important to repeat each concern so they know that you acknowledge and validate their concerns. This approach helps to build trust and shows the dealer that you are listening to their perspective. By repeating their concerns, you demonstrate that you understand their point of view and are willing to address their issues. This can help to open up a constructive dialogue and potentially find a resolution that satisfies both parties.Rate this question:
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- 27.
How should you handle funding stores?
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Once they are funding, leave them alone. Have them build their portfolio through the buyer and the funder. Your job is to sign and train stores.
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Continually work all products to assist dealer in increasing business incrementally
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Visit dealers and arrange pockets according to both, application and funding production.
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Speak to the owner on how he is losing money - do this without the finance manager being present.
Correct Answer
A. Continually work all products to assist dealer in increasing business incrementallyExplanation
The correct answer suggests that the best way to handle funding stores is to continually work all products to assist the dealer in increasing business incrementally. This means consistently supporting and promoting the various products offered by the store in order to help them grow their business gradually over time. This approach involves actively engaging with the dealer and providing ongoing assistance to ensure their success.Rate this question:
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- 28.
How should you break down your dealer base?
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Franchise and non-franchise dealers
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The good, the bad, and the ugly
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Non producing, producing/not funding, and funding
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It depends on what season we are in
Correct Answer
A. Non producing, producing/not funding, and fundingExplanation
The correct answer suggests that breaking down the dealer base into non-producing, producing/not funding, and funding categories is the most effective approach. This breakdown allows for a clear understanding of the different types of dealers and their performance levels. Non-producing dealers are those who are not generating sales, producing/not funding dealers are those who are making sales but not receiving funding, and funding dealers are those who are both making sales and receiving funding. This breakdown helps in identifying areas of improvement and determining the appropriate actions to be taken for each category of dealers.Rate this question:
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- 29.
What are some reasons a dealer may stop funding?
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Compliance
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Lack of product knowledge
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Inventory
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Capital issues
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All of the above
Correct Answer
A. All of the aboveExplanation
A dealer may stop funding for several reasons. Compliance issues could arise if the dealer fails to meet certain legal or regulatory requirements. Lack of product knowledge can also be a reason, as dealers may struggle to effectively sell and promote products they are not familiar with. Inventory problems, such as a lack of stock or poor management of inventory, can also lead to funding issues. Lastly, capital issues, such as financial difficulties or a lack of funds, can cause a dealer to stop funding. Therefore, all of the mentioned reasons can contribute to a dealer's decision to cease funding.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Jun 15, 2012Quiz Created by
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