520A APRChecker PC & Dealer Reserve

Main Input Dialog
Setup Dialog
Results Window
Request Demonstration Copy
How Dealer Reserve is Calculated
Technical Specifications
Software Updates
Full Screen Image

The APRChecker checks the Annual Percentage Rate and Federal Box Disclosure of retail contracts, and to compute the dealer reserve by three different methods.

0% loans can be checked and discounted. The program automatically adjusts the final payment, if necessary, to make sure the sum of the payments exactly equals the Total of Payments.

The various disclosure items are entered on the Main Input Dialog: APR, Finance Charge, Amount Financed, Total of Payments, Payment Schedule, etc. These numbers are checked for mathematical accuracy. If any error or deviation is detected, it is reported.

Extensive help is built into the program.  Just click on the small "?" at the upper-right corner of any dialog, and then click on the field you want help on.

The entered data and results are displayed in a separate Output Window and can be printed or copied to the clipboard.  Multiple output windows can be generated making it easy to compare one loan to another.

The Setup Dialog allows you to configure the program options:  set the calendar system used to measure the first period of the loan, set the APR tolerance (from 0.00% to 0.12% deviation), and to select the dealer reserve method.  You can select the percentage of the dealer reserve paid, and a minimum dealer reserve amount to be paid.  See How Dealer Reserve is Calculated.

The program also computes interest rate buy-down amounts.  This enables a dealer to advertise a very low (even 0%) finance rate to attract customers, and then sell the loan contract to a lender at the lender's required rate.  The routine computes the additional amount the dealer needs to give the lender.

Main Input Dialog

Screen Shot of Main Dialog for entering Data

This is the main input dialog.  Help is available on each field by dragging the "?" mark from the upper right corner to the field you want help on and then clicking on that field.

The prepaid charge field is optional, and can be disabled by using the Setup Dialog.

The Lender Buy Rate is the lender's required rate.  It can be greater or lesser than the loan interest rate.  If it is greater, the program computes an interest rate buy-down amount.

The disclosure items are checked mathematically to make sure that they "add up" and that the product of the number of payments times the payment amount equals the total of payments.

To check the loan, click on the [Compute] button.

Calendar for Picking Dates

The loan date and first payment due dates are easily picked off month calendars by just clicking on the desired date.

Setup Dialog

Screen Shot of Setup Dialog

The Setup Dialog allows you to select the calendar system to measure the first period, and to optionally limit the number of days to the first payment (the limit, if imposed, is 100 days).

You can set the APR Tolerance and Precision -- a warning appears if a loan's APR falls outside of the specified tolerance.

The prepaid finance charge option is enabled on this dialog, and the dealer reserve method, percent paid, and minimum reserve are also set on this dialog.

Output Window

Screen Image of Results Window

In order to provide a complete record of a loan, all the input data is displayed.

Then the computed APR is displayed and the amount by which it deviates from the disclosed APR.  If it deviates by more than the specified tolerance, an additional warning dialog box appears, and the message "APR WARNING" appears in this window.

The equivalent add-on rate can be computed based on the term and finance charge.  Some states still legislate the maximum interest charge for new and/or used cars using add-on rates and this computation quickly reveals the add-on rate used to compute the loan..

If a dealer reserve method is enabled, the name appears together with the lender's buy rate and percentage paid.  In this example, the lender is buying the loan at 8.00%, and is advancing the dealer 75% of the computed dealer reserve amount.

The total dealer advance (note amount plus dealer reserve) is shown.

Request Demonstration Copy

Lenders can request a fully-functional demonstration copy of this program by emailing us at the address at the bottom of this page.

Please include your name, institution name, address, telephone number, and email address.

520A Software Updates

This is a list of the most recent changes together with the date they were made and the PC Software Version number.

The most recent version is at the top of the following list.

Date Version Changes
Jan 2011 Update for Windows 7/DEP.
Oct 2001 Add ability to check & discount 0% loans.
Feb 2001 Add option for APR calculations to 2 or 3 decimal places.
Feb 2001 Add Actual/365 and Actual-to-First calendar systems.  Add option to use simple or compound A.P.R. calculations in first period for Fed calendar.
Apr 2000 Add password option to protect Setup Dialog.  Change default A.P.R. tolerance to 0.02%.
Feb 2000 Updated to run on Windows NT/2000 as well as Windows 9x.
Dec 1999 Add calculation of Equivalent Add-on Rate.
Oct 1999 Initial release.

11 Jan 2011