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BUDCO FINANCIAL
FORD PROTECT
INSTALLMENT
PAYMENT PLAN
Discover convenient, interest-free financing
for Ford Protect extended service plans.
dealer.budcofinancial.com
Fast, Easy, Flexible, It’s the Smart Choice!
Dealer User Guide
Installment Payment Plan
ADMINISTERED BY BUDCO FINANCIAL SERVICES
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FORD INSTALLMENT PAYMENT PLAN
A Ford Protect Extended Service Financing Plan That Fits the Needs of Today’s
Customers and Dealers
Experience and Proven Success
No one understands customers better than you. Today’s buyers expect you to make their experiences easy — from
the initial purchase to the very last service visit. Now, when you oer your customers a Ford Protect extended service
plan, you can provide a simple, convenient and economical way to finance their Vehicle Service Contract purchases.
Welcome to the Installment Payment Plan (IPP), the only alternative contract financing plan backed by Ford. IPP
gives your dealership a high-quality, no-interest financing plan that minimizes and simplifies the administration of
payment plans.
IPP is a sales tool to use at both the time of vehicle sale AND post-sale! The areas below represent a few of the best
uses to take advantage of IPP to increase your VSC sales.
For alternate finance (credit union,
other lenders) or cash buyers, unable to
roll the contract into vehicle financing.
With customers at the limit of their
vehicle loan amount.
For customers within their vehicle warranty
visiting your service department.
With dealer initiated CRM direct marketing
to consumers not buying at delivery.
Time of Sale Post Vehicle Sale
Budco Financial is a payment plan program management company specializing in comprehensive payment plan
solutions in the automotive industry. Founded in Detroit, Budco Financial is rich with automotive industry knowledge,
with over 15 years of experience working with major OEMs and vehicle service contract administrators.
We deliver no-interest payment plan solutions designed to help you create new revenue streams through more VSC
and product sales opportunities. We focus on integrated solutions that increase revenue, enhance brand loyalty and
help retain customers.
Best Uses
About Budco Financial
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DEALERSHIP ADVANTAGES
Making IPP Work For You – Dealership Features and Benefits
We are excited to provide Dealers across the country a program which includes the following benefits to
help you better service your customers:
Our system provides Dealers with greater eciencies in registering contracts, oers an improved process for monthly
invoices and letters, including an option for electronic invoicing, and provides newly designed performance reporting to
track and measure progress.
IPP System
• Ability to enter multiple Ford Protect Extended
Service Contracts on one Retail Installment Contract,
creating greater time savings and reduced dealership
administration fees
• Web-based interactive Dealer and customer sites
• 24/7 dealership reporting
• Finance terms of 6, 12, 18 and 24 months, providing
your customers with greater options
• Dealership payments are electronically processed
through the Dealer Parts Statement via ARMIS
• Easy-to-use, self-paced, online web-based training. By
giving you the ability to implement training modules at
a time convenient with your sta schedules, dealerships
now have the tools to use in the most ecient and
eective means to help sell more Ford Protect
extended service plans.
• Toll-free Dealer assistance line: (888) 368-8462
Invoice Options Electronic Contracting Performance Reporting
• Retail Installment e-Contract – Reducing manual faxing, registration issues and improving Dealer remittance timing,
fully integrated with Ford eForms.
• Default Cancel Prevention Program – A process designed to prevent Dealer chargebacks when accounts are at risk
of cancellation due to non-payment.
• Dealer Concierge and Customer Service – Our representatives focus on providing the highest level of service
for your needs, as well as your customers’, including registration error resolution, default cancel intervention and
program training
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CUSTOMER ADVANTAGES
IPP Customer Features and Benefits
• Interest-free payments
• No credit application - everyone qualifies
• No waiting for credit approval
• As little as 10% down payment
• Choice of extended terms: 6, 12, 18 or 24 months
• Online payments & scheduled payments
Choice of payment options:
1) Direct debit to checking/savings account
2) Automatic monthly charge to buyer’s Visa,
MasterCard, Discover or American Express
3) Monthly mailed or emailed statement
Considering the many opportunities to sell Ford Protect extended service plans throughout the ownership cycle,
IPP is most eectively used in these sales scenarios:
• Post vehicle sale
1) Customers nearing the end of their vehicle warranty
2) Customers visiting your service drive
3) Dealership-initiated direct marketing campaigns
• Used vehicle customers
• Customers arranging their own financing
• Customers “capped” by the vehicle loan financing
• Customers who pay cash, but are attracted to same-as-cash, no-interest financing
• Customers who prefer not to include Ford Protect in their vehicle financing
Target Audience for IPP
Interest Free No Credit Application Choice Of Extended Terms
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E-CONTRACT
Budco Financial is pleased to oer e-Contract as the
primary registration tool for processing the IPP Retail
Installment Contract. This valuable tool helps you
to complete the Budco Financial Retail Installment
Contract quickly and easily using dealer.budcofinancial.
com. Once completed, the form is electronically
submitted removing the requirement to fax, email or
mail the RIC to Budco Financial. This process reduces
registration errors that cause delays in contract
activation and Dealer payment. More than 95% of all
Retail Installment Contracts today are coming to Budco
Financial through the e-Contract tool.
1. Selling Dealer information will auto-populate based on
the P&A code used to log into the system
2. Enter the 17-digit VIN (the system will
produce an error message if more/less than
17 digits are entered)
3. Enter the Current Odometer
4. The Vehicle make, model and year will
auto-populate based on the VIN
5. Enter customer information as it reads on the
contract (complete name, street address, city, state,
ZIP, phone number – we highly recommend you
capture a work number and email address as well)
6. Enter the Cash price (not including tax,
if applicable)
7. Enter Tax (if applicable)
8. Down payment will automatically populate with
the 10% minimum down payment; however, if you
have collected an amount greater than 10% you can
override this default
9. If a second contract is being purchased on the same
VIN, click the Add Contract button and repeat
steps 6-10 for the second contract. As long as the
contracts are going on the same VIN, additional
contracts can be added to this form without the need
to re-enter information already added for
the purchase
Completing the Online Installment Payment Plan e-Contract
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E-CONTRACT
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10. Enter the coverage Terms. This field generates the
eligible number of payments for the coverage Term
selected
11. Select the Number of payments
12. Choose Purchaser Payment Option:
a. Monthly Direct Debit to a Checking/Savings
Account: Enter the Bank name, Routing
number, Account number, select the Account
type and Preferred payment day. Note: An
Authorization for Direct Payments form must
be completed and submitted for this option
b. Credit/Debit Card: Select the Card type and
enter the Card number, Expiration date and
Cardholder’s name
13. Check the boxes for both Purchaser agrees to
sign the agreement and Dealer agrees to sign the
agreement, and enter the Dealer Representative’s
name
14. Click the Generate Signed Contract button (the
next screen will provide a link to print copies of the
contract(s) for the Dealer
and customer)
Note: When entering the Ford Protect Extended
Service Contract into ESPS, please remember to click
the “Yes” button for Time Payment. You’ll find that on
the first screen of the Contract Registration System
in ESPS.
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CONTRACT SAMPLE
Purchaser Payment Plan Options:
/
Monthly Direct Debit to Checking/Savings Account (ACH)
• Complete the Authorization Agreement For Direct Payments form (IPP-ACH)
• Your checking or savings account will be debited for monthly payments of
Credit/Debit Card: The balance of the total sale price of “The Plan” may be paid by Purchaser through a charge to Purchaser’s Visa, MasterCard or Discover
credit/debit card account listed below over a period of months by Budco Financial Services, LLC (BFS) charging Purchaser’s account on a monthly basis
the amount of payments disclosed above.
Visa MasterCard Discover American Express (only 15 digits)
Card Number: Expiration Date:
Purchaser authorizes charges to its credit/debit card account for the purchase of “The Plan” in accordance with this Agreement.
Cardholder’s Name (Please print)
Cardholder’s Signature Date:
Monthly Statement: The total sale price may be paid over a period of months by making that number of payments to Budco Financial Services, LLC (BFS).
Purchaser agrees to pay BFS consecutive monthly payments of $ each on the scheduled monthly payment date until fully paid. BFS will pay
the dealer and/or the Ford Motor Company identied in “The Plan” Agreement for “The Plan”. If Purchaser fails to make all the payments when due, “The Plan” will
be terminated by the Ford Motor Company identied in “The Plan” Agreement as provided below. The right to receive these payments will be assigned to BFS
by the dealer. Purchaser will therefore receive a notice directly from BFS on when and how to make payments.
VEHICLE IDENTIFICATION - CONTRACT NUMBER:
Ford/Lincoln Protect Extended Service Plan (“The Plan”)
Current Odometer Mileage: ______________________________
Purchaser of “The Plan” (“Purchaser”)
Name
Street Address
City State ZIP Code
Telephone (Include Area Code) Email
Selling Dealer (“Dealer/Creditor”)
Dealership Code (P & A)
Dealer Name
City State ZIP Code
We do not disclose any non-public personal information
about our customers or former customers to anyone, except as
permitted by law.
Dealer makes the following federal Truth in Lending disclosures:
Itemization of Amount Financed
ANNUAL
PERCENTAGE
RATE
The cost of your
credit as a yearly
rate.
0%
FINANCE
CHARGE
The dollar
amount the
credit will cost
you.
$0.00
Amount Financed
The amount of
credit provided
to you or on your
behalf.
$
Total of
Payments
The amount you
will have paid
after you have
made all payments
as scheduled.
$
Total Sale Price
The total cost of
your purchase
on credit,
including your
down payment
of $
$
Your payment schedule will be:
Number of Payments Amount of Payments When Payments are Due
$
Monthly beginning on*:
__________________
Budco Financial Services
888-352-7901
DEALER
(Revision date: September 2015)
INSTALLMENT PAYMENT PROGRAM
RETAIL INSTALLMENT CONTRACT
(the “Agreement”)
a. Cash Price (not including
taxes on sale) $
b. Taxes on sale $
c. Cash Price (a+b) $
d. Down Payment
(Minimum 10%) $
e. Amount Paid on your
account (Amount
Financed) (c-d) $
Total Amount Financed $
Purchaser Date Dealer/Creditor Date
Prepayment: If you pay off early, you will not have to pay a penalty.
Security: You are giving a security interest in “The Plan” being purchased.
Late charge: If a scheduled payment is more than 15 days late you will be charged a late charge
equal to the lesser of $5 or 5% of the late payment.
See “The Plan” Agreement for any additional information about nonpayment and refunds.
*Monthly 30 days after date signed. Actual contract processing timing may delay the date of your rst
payment
Notice to Purchaser: (1) Do not sign this agreement before you read it or if it contains any blank spaces. (2) You are entitled
to an exact copy of the Agreement you sign. (3) Under the law you have the right, among other things, to pay in advance the full
amount due and to obtain under certain conditions a partial refund of the nance charge. (4) Keep this Agreement to protect
your legal rights. You acknowledge receipt of a copy of this Agreement.
Retail Installment Contract
DEALER
BFS-RIC-02
SAMPLE
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DEALERSHIP USAGE FEES
Dealer Cost
Dealership administration fees will be based on the IPP finance term and the amount financed.
IPP Administrative Fees**
Amount Financed
Finance Term
6 Months 12 Months 18 Months 24 Months
Less than $1,600 $79 $117 $169 $236
Less than $2,000 $115 $144 $208 $271
Less than $2,400 $142 $166 $236 $310
Less than $2,800 $158 $178 $254 $343
$2,800 or more 6.3% 7.5% 10.7% 14.9%
**IPP fees will be adjusted based on Budco Financial’s borrowing rate.
Ford Protect
Coverage Terms
Eligible IPP
Financing Term
12 months 6 months
24 months 6 or 12 months
36 months 6, 12 or 18 months
48 months or greater 6, 12, 18 or 24 months
*Excluding EtchCARE, DentCARE and SurfaceCARE.
Coverage Term Eligibility
Customers can use IPP to buy all Ford Protect extended service plans new or used plans with 12 or more months
of coverage.*
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All pages of the legal agreement must be returned. Do not return just the signature page. If all pages are not
returned with an original signature this will cause enrollment delays.
Thank you
Dealer Name: Dealer PA Code:
Dealer Address:
Dealer Fax No. Dealer Phone No.
The Dealer identified above (“Dealer”) seeks to enroll and participate in the BUDCO FINANCIAL SERVICES
INSTALLMENT PAYMENT PROGRAM oered by Budco Financial Services, LLC, a Delaware corporation
(“BFS”), to authorized Ford and Lincoln dealers in the United States and customers purchasing authorized Ford
Extended Service Contracts (“Plan Contracts”) from them (the “Plan”). The Plan is oered by BFS pursuant to an
agreement with Ford Motor Company (“Ford”). By signing this Dealer Plan Enrollment and Participation Agreement
(“Agreement”) below, Dealer shall be immediately enrolled in the Plan.
This Agreement and the Plan include the attached BUDCO FINANCIAL SERVICES INSTALLMENT PAYMENT
PROGRAM DEALER PLAN CONTRACT TERMS AND CONDITIONS OF ASSIGNMENT, as well as
instructions relating to the Plan, or to the sale of Plan Contracts utilizing the Plan, furnished to Dealer by BFS (with
respect to Dealer’s relationship with BFS) or Ford (with respect to Dealer’s relationship with Ford), and Dealer
agrees to abide fully with the same. The parties to this Agreement (“Parties”) are BFS and Dealer.
DEALER ENROLLMENT
Important:
Please note that a participation agreement must be returned before contracts can be registered using the IPP
program. Make a copy of the signed agreement and send all pages of the participation agreement to one of the
options below:
Email to: dealer@budcofinancial.com
Fax to: 1-888-846-9136
(Address) (City) (State)
[Dealer Name]
[Signature] [Date]
By:
[Title]
Or Mail to:
Budco Financial Services
Attention: IPP Processing Center
P.O. Box 321067 Detroit, MI 48232
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DEALER ENROLLMENT
Dealer Plan Enrollment and Participation Agreement
1) General. During the term of Dealer’s participation in the Plan, Dealer is authorized to oer the Plan to customers
in the United States purchasing PLAN Contracts from it. In participating in the Plan, Dealer will at all times
comply with this Agreement and the policies, guidelines, and instructions (collectively, “Guidelines”):
(i) relating to the Plan issued by BFS from time to time (including, without limitation, the Budco Financial
Services Installment Payment Program Dealer Administration Guide) (collectively, “BFS Guidelines”); and,
(ii) relating to the sale of PLAN Contracts and the Plan issued by Ford (or subsidiaries of Ford who are parties
to PLAN Contracts) from time to time (including, without limitation, the Ford PLAN Operating Guide)
(collectively, “Ford Guidelines”). Dealer will oer the Plan with respect to eligible PLAN Contracts only.
PLAN Contract eligibility is as described in the Dealer Administration Guide and Operating Guide.
2) Execution of Installment Contracts. If a customer chooses to pay for the purchase of an PLAN Contract sold by
Dealer utilizing the Plan, Dealer will (contemporaneously with the customer’s execution of the PLAN Contract)
execute a retail installment contract (“Installment Contract”) with the purchasing customer for the Net Retail
Sales Price of the PLAN Contract and collect the required down payment (“Down Payment”) (as specified in
Attachment 1 and the Guidelines). Installment Contracts must be executed only in the form approved by BFS,
and Dealer will be responsible for properly completing Installment Contracts. A copy of the current version of
the approved form is attached hereto as Attachment 1. BFS will provide Dealer with any new or revised versions
of the form from time to time, as necessary. The Installment Contract will allow the customer to pay the “Net
Retail Sale Price” of the PLAN Contract (which will be the aggregate of the price at which Dealer sold the PLAN
Contract to the customer and the amount of applicable state sales tax incurred on the sale [if any], less the Down
Payment collected by Dealer) over the time period chosen by the customer. The time periods available to the
customer are as provided in the BFS Guidelines.
3) Assignments. Upon the execution of a PLAN Contract and the related Installment Contract, and the collection
of the appropriate Down Payment by Dealer, as described above, Dealer will activate the PLAN Contract in
the Ford Protect Extended Service Plan computer system (“Plan System”) as described in the Ford Guidelines.
Upon such activation, the Installment Contract will be automatically assigned by Dealer to BFS in consideration
of BFS’ payment to Dealer of the Assignment Price therefor. The assignment will be made automatically under
this Agreement without further action by Dealer or BFS, eective upon such activation; provided, however, that
the assignment will be conditioned upon BFS’ payment to Dealer of the Assignment Price for the Installment
Contract. In the event that the Assignment Price is not paid by BFS as required under this Agreement, this
condition will not be satisfied and, at the sole discretion of Dealer, the assignment will be deemed null and void
and Dealer will have all rights under the Installment Contract, including, without limitation, all rights to collect
payments from the customer thereunder. Such assignments will be without recourse to Dealer, except as
otherwise expressly provided for in this Agreement. BFS will be responsible for providing any notices to customers
required by applicable law with respect to the assignment of Installment Contracts to BFS hereunder.
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DEALER ENROLLMENT
4) Payment of Assignment Price; Other Fees Relating to Installment Contract.
a) Upon the eective date of the assignment of an Installment Contract by Dealer to BFS hereunder,
BFS will be obligated to pay to Dealer the “Assignment Price” for the Installment Contract; provided,
however, that BFS will have the right to withhold payment of the Assignment Price until it has received
the original Installment Contract from Dealer (as further described in Section 6). The Assignment Price
for an Installment Contract will be equal to: the Net Retail Sale Price of the PLAN Contract related to
the Installment Contract, less the IPP Administration Fee for the Installment Contract (as specified in
Attachment l). Assignment Prices will be paid by BFS as follows:
i.) Payment for a contract will occur after Budco Financial Services is able to establish a customer
account. The monthly Dealer Statement and payment will cover a period beginning the 5th of the
previous month through the 4th of the current month, and will be paid on the 22nd of the current
month.
ii.) Payments will be handled on a net settlement basis, to the extent that there are sucient payables
due to BFS from Dealer (e.g., for cancellations) to be netted against. If there are insucient
payables, BFS’ net payment will be made by check in immediately-available funds. BFS’ payment
will be accompanied by a monthly statement for Dealer summarizing the following activities relating
to PLAN Contracts sold by Dealer utilizing the Plan during the month covered by the statement:
new sales, upgrades and downgrades, cancellations, and reinstatements. Ford will debit Dealer’s P&A
Account for the Wholesale Cost of the PLAN Contract as described in the Ford Guidelines.
iii.) In addition to IPP Administration Fees, BFS will be entitled to collect from the customer who is
a party to each Installment Contract: a “Cancellation Fee” in the event that the related PLAN
Contract is canceled as described in Section 5; and, a “NSF Fee” or an “Unavailable Credit Fee” as
specified in the Dealer Admin Guide and the Operation Guide in the event that BFS is unable to cash
a customer’s check, or to process a debit to the customer’s credit card or savings or checking account,
because of insucient funds or unavailable credit, respectively.
5) Cancellations.
a) In the event that an PLAN Contract sold by Dealer utilizing the Plan is canceled: (a) at the request of the
customer that purchased the PLAN Contract; (b) at the request of Ford (or a Ford subsidiary that is a party
to the PLAN Contract) made in accordance with the PLAN Contract; or (c) at the request of BFS made
on behalf of the customer who purchased the PLAN Contract in accordance with the related Installment
Contract as a result of non-payment by the customer and BFS has followed the cancellation procedures
set forth in the Guidelines; then Dealer will pay to BFS the full amount that Dealer is required to return to
the customer (or the customer’s “Lienholder” under the PLAN Contract) pursuant to Ford’s formula for
calculating customer refunds applicable to the PLAN Contract as specified in the Ford Guidelines (“Refund
Amount”), and Ford will credit Dealer’s P&A Account for Ford’s (or the appropriate Ford subsidiary’s)
unearned premium on the PLAN Contract. The foregoing notwithstanding, Dealer will not have any obligation
to pay to BFS, and BFS will have no right to collect from Dealer, any Refund Amount or other payment with
respect to the cancellation of an PLAN Contract for which the related Installment Contract has been paid in
full to BFS (or its permitted assignee), it being understood that any funds due to the customer as a result of
such cancellation will be paid directly by Dealer.
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DEALER ENROLLMENT
b) Payments under Section 5(a) will be handled on a net settlement basis with BFS, to the extent that there
are sucient payables due to Dealer from BFS to be netted against. If, however, there are insucient
payables due to Dealer from BFS to be netted against, Dealer authorizes Ford to debit Dealer’s Ford Parts
and Accessories account (“P&A Account”) for the net amount of payments due and remit the same to BFS,
and authorizes BFS to initiate such a debit by Ford. If Dealer’s P&A Account is not utilized, BFS will invoice
Dealer for the payment and the payment will be due by check within thirty days after the Dealer’s receipt of
the invoice.
c) In addition to the foregoing, with respect to any debit made by Ford to Dealer’s P&A Account upon the
termination or resignation of Dealer’s Sales and Service Agreement with Ford pursuant to Ford’s policies
relating to terminating dealerships specified in the Ford Guidelines, Dealer authorizes Ford to remit to BFS
from such debited amount the Refund Amounts due to BFS with respect to PLAN Contracts sold by Dealer
utilizing the Plan that are canceled after the date the debit is made. In addition, upon the cancellation of such
an PLAN Contract, Dealer authorizes Ford to remit directly to BFS the unearned premium of Ford (or the
appropriate Ford subsidiary) on such PLAN Contract (which amount would normally be credited to Dealer’s
P&A Account upon cancellation pursuant to the Ford Guidelines) to the extent that Ford is able to do so
under applicable law.
d) BFS may retain from a Refund Amount the amount that it is entitled to retain under the related Installment
Contract as a result of the cancellation of the related PLAN Contract. Any amount to be paid to the
customer under an Installment Contract after deducting from the Refund Amount the amount that BFS is
entitled to retain will be paid by BFS to such customer by check in immediately-available funds within 30
days after the date that the PLAN Contract was canceled. In the event that BFS fails to make any such
payment to a customer when and as required under this Section 5(c) after 5 days advance written notice to
BFS of such failure (and provided that BFS does not provide to Dealer proof of payment to such customer
within such 5 days), Dealer (if Dealer has paid the Refund Amount to BFS as required pursuant to this
Section 5) may, at its sole discretion, but without obligation to do so, pay to such customer the amount of
such payment and charge BFS for the same.
6) Other Actions Relating to Installment Contracts.
Dealer will indicate BFS as the “Lienholder” in the appropriate section of the PLAN Contract for each PLAN
Contract sold by Dealer utilizing the Plan; provided, however, that such designation will be conditioned upon
BFS’ payment to Dealer of the Assignment Price for the related Installment Contract as required under this
Agreement, and such designation will cease when the Installment Contract relating to the PLAN Contract has
been paid in full. Dealer will sign the Assignment part of the Installment Contract, assigning it to BFS. Dealer
will, send to BFS via eContract, fax, email, mail or courier the “Assignee Copy” of each PLAN Contract sold by
Dealer utilizing the Plan, along with the signed copy of each Installment Contract relating to each such PLAN
Contract. Dealer will keep the “Dealer Copy” of the Installment Contract for its records for a period of two years
following the date of the Installment Contract.
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7) Warranties & Representations of Dealer. Dealer agrees to, and represents and warrants each of the following
to BFS:
a) It is a strict condition of the Plan that the Retail Sale Price (the aggregate of the price at which Dealer sold
the PLAN Contract to the customer and the amount of applicable state sales tax incurred on the sale [if any])
of each PLAN Contract oered for sale to customers by Dealer utilizing the Plan will not vary depending
upon whether the customer chooses to finance the purchase of the PLAN Contract utilizing the Plan instead
of paying cash, no incremental charges may be assessed under any circumstances by reason of the customer
electing to purchase such PLAN Contract utilizing the Plan instead of paying cash, and no discount may be
oered to the customer in any manner to entice the customer to pay cash as opposed to purchasing such
PLAN Contract utilizing the Plan.
b) With respect to each Installment Contract assigned to BFS hereunder, Dealer warrants and represents,
eective as of the: (i) eective date of assignment of the Installment Contract, that the Installment Contract
is free and clear of all mortgages, liens, charges, pledges, and encumbrances (other than those expressly
provided for in this Agreement), and that the Installment Contract has not been sold, assigned, or transferred
(except with respect to the assignment made to BFS pursuant to this Agreement); and, (ii) eective during
the time period beginning upon the date of such assignment and ending upon the date upon which the
Installment Contract is fully paid, such warranties and representations of Dealer will remain true and correct
with respect to the absence of any mortgages, liens, charges, pledges, encumbrances, sales, assignments, or
transfers made by or through Dealer.
8) Term; Termination; Events of Default; Other Remedies.
a) Term. The term of this Agreement and Dealer’s participation in the Plan will commence on the date first
set forth above and continue until terminated in accordance with the following: (i) a Dealer or BFS may
terminate this Agreement and Dealer’s participation in the Plan at will and without cause upon at least
thirty days prior notice to the other Party; (ii) a Dealer or BFS may terminate this Agreement and Dealer’s
participation in the Plan immediately upon notice to the other Party in the event of the occurrence of
an event of default by the other Party; or, (iii) this Agreement and Dealer’s participation in the Plan will
automatically terminate if: (A) Ford terminates its PLAN Contract program pursuant to which PLAN
Contracts are sold via authorized dealers, or (B) BFS’ agreement with Ford pursuant to which the Plan is
oered to Dealer terminates for any reason or (C) upon the termination or resignation of Dealer’s Sales
and Service Agreement with Ford for any reason. The termination of Dealer’s participation in the Plan by
a Party in accordance with this Section 8(a) will be without liability of any kind for the terminating Party.
With respect to a transaction or event occurring prior to the termination of this Agreement and Dealer’s
participation in the Plan, such termination will not aect or impair the rights or obligations of a Party under
this Agreement, the Plan, or an Installment Contract relating to such transaction or event.
b) Events of Default. The occurrence of any of the following events will constitute an event of default of
the Party with respect to which such event occurs or relates: (i) a breach by a Party of any of its material
obligations under the Plan and such Party’s failure to fully cure such breach within ten days after notice from
the other Party of such breach; (ii) any material representation or warranty made or furnished by a Party
to the other Party under the Plan becomes materially false or untrue; (iii) a Party becomes insolvent, files a
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DEALER ENROLLMENT
voluntary petition in bankruptcy, an involuntary petition in bankruptcy is filed against such Party, a receiver or
trustee is appointed for such Party, or such Party executes an assignment for the benefit of creditors; or, (iv)
Dealer assigns or delegates any of its rights or obligations hereunder without the consent of BFS.
c) Compliance with Law; Control of Price; Other Remedies. BFS and Dealer will comply with all applicable
law, rules, and regulations in its performance of its obligations under this Agreement. In all cases Dealer will
have and retain the authority to determine the Retail Sales Price of PLAN Contracts sold by it except in
the state of Florida. PLAN dealers with a physical address in the state of Florida or any dealer selling PLAN
via the Internet to consumers with a physical address in the state of Florida must sell PLAN at the Florida
published retail price (PLAN Florida Retail price book). PLAN Dealers with a physical address in the state
of Pennsylvania cannot sell PLAN at a Retail price that exceeds 100% of the Dealer Cost. BFS will have no
obligation to oer or take assignment of any PLAN plan that is not sold at the mandatory Florida Retail price,
or any PLAN Pennsylvania Plan that exceeds the 100% cap on the Retail Price. Without limiting any of the
terms or conditions of this Agreement or any other rights or remedies of Dealer, in the event that BFS fails
to pay any sums owed by it to Dealer under this Agreement within ten days after the date upon which such
payment becomes due, Dealer will have the right (but not the obligation), at its sole discretion, to oer to the
customer that is a party to the Installment Contract to which such non-payment relates (or the permitted
assignee of the customer) a new or alternative PLAN Contract, or a new or alternative retail installment
contract (or other financing arrangement) relating to the purchase price of such PLAN Contract (or any
such new or alternative PLAN Contract), that would replace or result in the termination of the customer’s
Installment Contract that was assigned to BFS hereunder. Dealer’s exercise of such right will be without
liability to Dealer.
9) Changes to Guidelines, Forms, and Fees. The Attachments hereto (including, without limitation, any fees payable
to BFS hereunder and the approved form of Installment Contracts) and the BFS Guidelines may be revised
or amended from time to time by BFS upon notice to Dealer (BFS acknowledges that any such revisions or
amendments must be approved by Ford in advance). The Ford Guidelines may be revised or amended from time to
time by Ford upon notice to Dealer. No such revisions or amendments will, however, aect transactions entered
into under this Agreement prior to the later of the eective date of such revision or amendment or the eective
date of BFS’ or Ford’s (as appropriate) notice thereof to Dealer.
10) Provision of Information to Ford. Dealer agrees that BFS may, upon Ford’s request, provide Ford (or its
subsidiaries who are parties under PLAN Contracts, or the contractors of the same supplying services related to
the PLAN Contract program) with information or data: relating to Dealer’s participation in the Plan, including,
without limitation, information or data relating to Dealer’s account status or history and copies of any BFS monthly
statements for Dealer; and, relating to customers who purchased, or prospective customers for the purchase of,
PLAN Contracts from Dealer utilizing the Plan.
dealer.budcofinancial.com
15
DEALER ENROLLMENT
11) Notices. Any notice or other communication to be given under these Terms and Conditions will be in writing
and will be sent to the address of the Party set forth below by: (i) hand delivery, with written acknowledgement
of receipt; (ii) certified or registered first class air mail, postage prepaid; (iii) commercially recognized overnight
delivery service, acknowledgement of receipt requested; (iv) telephone facsimile, acknowledgement of receipt
requested (with a copy sent via the method set forth in Section ll (i), (ii) or (iii) above); or, (v) such electronic
means as the Parties may agree upon in writing; as follows (or to such other addresses or facsimile numbers as a
Party may designate by notice to the other Party):
If to BFS, addressed to:
BFS Financial Services
333 W. Fort Street
Suite 1750
Detroit, MI 48226
Attn: Mr. William Henry
Any such notice or other communication will be deemed given on the date of delivery, if sent via the method set
forth in Section ll (i), (ii) or (iii), or the date of transmission (assuming proper acknowledgement of completed
transmission is obtained), if sent via the method set forth in Section II (iv).
12) Section and Other Headlines; Entire Agreement; Waiver; Amendment; Ford Right to Enforce. This Agreement
constitutes the entire agreement between the Parties pertaining to the subject matter contained herein and
supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties.
Any reference to a Section or Attachment in this Agreement is a reference to a Section in, or Attachment
to, these Terms and Conditions, except as otherwise expressly provided for herein. All Attachments and the
Guidelines are an integral part of this Agreement and are incorporated herein. Unless the context requires
otherwise, terms defined in this Agreement in the singular form will include the plural form, and vice versa.
The Parties acknowledge and agree that Ford or the appropriate Ford subsidiary will have the right to enforce
as a third party beneficiary any provisions of this Agreement expressly giving Ford rights hereunder. BFS shall
not be responsible for, or liable to Dealer for, any obligations to be performed by Ford, per the terms of this
Agreement or otherwise. The descriptions of the obligations to be performed by Ford are included herein solely
to provide a more complete description of how the program works. Parties acknowledge and agree that Ford
or the appropriate Ford subsidiary will have the right to enforce as a third party beneficiary any provisions of
this Agreement expressly giving Ford rights hereunder. BFS shall not be responsible for, or liable to Dealer for,
any obligations to be performed by Ford, per the terms of this Agreement or otherwise. The descriptions of the
obligations to be performed by Ford are included herein solely to provide a more complete description of how the
program works.
If to Dealer, addressed to
Dealer at the address/fax
no. set forth on the first
page of this Agreement.
dealer.budcofinancial.com
16
13) Relationship. Each party’s relationship to the other Party under this Agreement and the Plan will be that of
an independent contractor and not an employee or agent, and a Party will not represent or hold itself out as
having any relationship with the other Party other than that of an independent contractor. A Party will not
be responsible for any tax levied on the other Party or its employees or representatives by any governmental
authority relating to this Agreement or the Plan or income attributed to the other Party or its employees
or representatives.
14) Waiver; Amendment; Assignment. No waiver of any of the provisions of this Agreement will be
considered, or will constitute, a waiver of any other provision, and no waiver will constitute a continuing
waiver. No waiver will be binding unless executed in writing by the Party making the waiver. No
supplement, modification, or amendment of this Agreement will be binding unless executed in writing
by the Parties, except as otherwise expressly provided for herein. No Party may assign any of its rights,
or delegate any of its duties, under this Agreement or an Installment Contract without the prior written
consent of the other Party; provided, however, that BFS may assign its rights under this Agreement
and an Installment Contract to Brian Unlimited Distribution Company (BFS’ parent company), or
to a third party bank providing funding to BFS for the provision of the Plan. Such an assignment, will,
however, be conditioned on the following: (a) such an assignment must be in writing; (b) the assignee
of such rights must accept the delegation of BFS’ obligations under this Agreement with respect to (i)
the possession and handling of information and data relating to Dealer and the customers to which such
assigned rights relate, and (ii) the payment of any sums to such customers in the event of cancellation
of their respective PLAN Contracts (as described in Section 5); and, (c) the assignee of such rights
must agree in writing with Dealer to the conditions relating to the eectiveness of the assignment of
Installment Contracts as set forth in Section 3. No assignment or delegation by BFS under this Section
14 will release BFS from any of its obligations under this Agreement.
15) Applicable Law and Dispute Resolution. This Agreement will be construed in accordance with, and
governed by, the laws of the State of Michigan, without regard to its conflict of laws principles. If a
dispute arises between the parties arising out of or relating to this Agreement, the following procedure
will be implemented before either party pursues other available remedies, except that either party
may seek injunctive relief from a court where appropriate in order to maintain the status quo while this
procedure is being followed:
a) The parties will hold a meeting promptly, attended by persons with decision making authority regarding
the dispute, to attempt in good faith to negotiate a resolution of the dispute; provided, however, that no
such meeting will be deemed to vitiate or reduce the obligations and liabilities of the parties or be deemed a
waiver by a party of any remedies to which such party would otherwise be entitled.
DEALER ENROLLMENT
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17
b) If, within thirty (30) days after such meeting, the parties have not succeeded in negotiating a resolution
of the dispute, they agree to submit the dispute to mediation in accordance with the then-current Model
Procedure for Mediation of Business Disputes of the CPR Institute for Dispute Resolution (“CPR”)
and to bear equally the costs of the mediation. The parties will jointly appoint a mutually acceptable
mediator, seeking assistance in such regard from the CPR if they have been unable to agree upon such
appointment within twenty (20) days after the conclusion of the negotiation period. The parties agree to
participate in good faith in the mediation and negotiations related thereto for a period of thirty (30) days
following appointment of the mediator. If the parties are not successful in resolving the dispute through
the mediation, then the parties agree to submit the matter to binding arbitration in accordance with the
CPR Institute for Dispute Resolution’s Rules for Non Administered Arbitration of Business Disputes, by
a sole arbitrator. All applicable statutes of limitations will be tolled during the negotiation and mediation
periods provided for in this Agreement. Mediation or arbitration will take place in Dearborn, Michigan,
unless otherwise agreed upon by the parties in writing. The substantive and procedural law of the State
of Michigan will apply to the proceedings. Equitable remedies will be available in any arbitration. Punitive
damages, exemplary damages and multiple damages will not be awarded and are hereby waived by the
parties. This clause is subject to the Federal Arbitration Act, 9 U.S.C.A. § 1 et seq. to the exclusion of any
state law inconsistent therewith, and judgment upon the award rendered by the Arbitrator, if any, may be
entered by any court having jurisdiction thereof.
(END)
DEALER ENROLLMENT
Be Sure to Bookmark Our Website: dealer.budcofinancial.com
This is your one-stop, online reference for all IPP information,
training, downloadable program forms and more!
Budco Financial is ready to help you sell more Ford Protect extended service plans. We’ll make it
easier for your customers to finance their deals and keep it simple for your team.
Call us today!
Important Contact Numbers
Budco Financial Dealer Assistance
Phone: (888) 368-8462
Email: dealer@budcofinancial.com
Ford Protect Administration
Phone: (800) 521-4144
INSTALLMENT
PAYMENT PLAN FROM
BUDCO FINANCIAL
dealer.budcofinancial.com
Installment Payment Plan
ADMINISTERED BY BUDCO FINANCIAL SERVICES
