NVDR PROGRAM NUMBER CODES: Fleet Purchase Program
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1 Chrysler Fleet Purchase Program Rules Updated Sept 24, 2012 NVDR PROGRAM NUMBER CODES: Fleet Purchase Program - 37ADF GENERAL PROGRAM STATEMENT This program is intended to encourage the use of Chrysler Group LLC products by Registered Fleet Accounts engaged in commercial, fleet leasing activities. If the Registered Fleet Account customer and Dealer meet the requirements of these Program Rules, the Registered Fleet Account customer is entitled to the available Fleet Purchase Program (FPP). Unless otherwise indicated, Fleet incentives are intended for the benefit of Registered Fleet Accounts designated as FAN1. PROGRAM PERIOD The Program Period shall commence with the purchase of any 2013 Eligible Vehicles for orders placed between June 6, 2012 and December 31, ELIGIBLE ENTITIES A Qualified Fleet Account (See Chrysler Incentive Manual, formerly the Gold Book ) must complete the enrollment procedure and be accepted by Chrysler to become a Registered Fleet Account and thus receive the benefits under this program. It is the dealership s responsibility to determine a customer s fleet eligibility. (Note: to assist with eligibility and enrollment procedures, please contact the fleet information center at ). A fleet account currently enrolled in Chrysler fleet programs, will continue to be a Registered Fleet Account and will not be required to re-enroll (unless otherwise notified). The Fleet Account Number (FAN) previously assigned will remain in effect. Private Driver s Education School entities - Chrysler Fleet Operations announces that private driver s education entities that meet Chrysler requirements are entitled to participate in the Fleet Purchase Program. Private driver education companies must provide state certification documentation, in lieu of vehicle ownership requirements required to become a Qualified Fleet Account. Dealers are required to keep such certifications in the deal jacket. Please contact the fleet information center at for questions. ELIGIBLE VEHICLES Any new and unused 2013 Chrysler vehicles listed in the Purchase Allowance section herein sold or leased to a Registered Fleet Account in one of the fifty (50) United States or the District of Columbia by an authorized Chrysler Dealer during the Program Period shall be an eligible vehicle under this program. Eligible vehicles also include untitled Dealer demonstrators removed from service and subsequently sold to a Registered Fleet Account. INELIGIBLE VEHICLES/PROGRAMS Any vehicle described below shall be an Ineligible Vehicle under this Program: 1. End Use Customers with a VIP (Volume incentive Program) agreement are not eligible for the Fleet Purchase Program or Retail incentives on ordered units. On Out-of-Stock purchases, the dealer must report a sale to a VIP customer as a fleet sale (Type sale 3 and 5) claiming retail programs, the VIP customer will not receive any VIP incentives. Retail programs are defined as Customer and /or Dealer Cash incentives. Those vehicles will count towards any VIP volume objective. 2. Vehicles sold or leased to an End-User without a Chrysler Fleet Account Number. 3. Vehicles sold or leased to tax exempt and/or state, local, or federal government agencies. 4. Vehicles sold or leased to public utilities with bid concessions. 5. Vehicles exported outside of the U.S. 6. Vehicles sold or leased as daily rental GDP vehicles. 7. Vehicles sold or leased as Daily Rental vehicles and claiming Daily Rental Purchase Program (37ABV) incentives. 8. Dealer Rent A Car (DRAC) Program vehicles. 9. Vehicles sold with a school bus conversion or uplift package. 10. Dealership or affiliated leasing or rental company vehicles used as demonstrators, employee vehicles, promotional vehicles, or for any other type of Dealer usage, other than bona fide leasing usage. 11. SmartLease or equivalent sub vented lease/ Purchase Financing transactions. Such leases/ Purchases will forfeit all fleet incentives, including but not limited to: Invoice credits and Daily Rental Purchase Allowance (DRPP). Fleet related Invoice credits will be charged back to the selling Dealer. ORDER PLACEMENT To properly order a vehicle, each type of fleet sale must carry the correct: order code, purchaser s 5 digit Chrysler Fleet Account Number (FAN 1) and (for leased vehicles) End-User s 5 digit Chrysler Fleet Account Number (FAN2). The chart below is provided as a guide. LEASING COMPANY END-USER TYPE SALE ORDER CODES FAN* FAN* Commercial Sale 4WA or the 3 digit client NO YES (FAN 1) Type 3 code if assigned Fleet Lease 4WA or the 3 digit client YES (FAN 1) YES (FAN 2) Type 5 code if assigned *Eligible orders and NVDR's must include the Purchaser's 5-digit Chrysler FAN and, if leased, the End-User s 5-digit Chrysler FAN. If Dealer uses 4WA on order, must also add code 3GD to delete Dealer group funds from invoice. 1
2 Chrysler Fleet Purchase Program Rules Updated Sept 24, 2012 NVDR SALES REPORTING A Fleet New Vehicle Delivery Report (NVDR) must be completed and accurately transmitted through Dealer Connect or Chrysler s Direct Order Transfer (CDOT) process, utilizing the purchaser s and/or End-User s correct Fleet Account Number(s) (FAN), Sale Type and Program Number. Failure to properly code and report fleet sales or keeping a vehicle in inventory for more than 60 days will result in a charge back of credits and incentives, including but not limited to, FPP, invoice credits, no charge options or cash payments. All program vehicle sales must be reported by December 31, 2011 to be eligible for payment under this Program. When submitting an incentive claim for this program, the Dealer must use one of the program codes below: Program Code Type of Sale 37ADF Commercial Sale - Type 3 37ADF Fleet Lease - Type 5 o o o ORDERED FLEET / SOLD FLEET Any eligible vehicle properly ordered for and sold or leased to a Registered Chrysler Fleet Account will receive an invoice credit on the vehicle factory invoice in the amount of the Fleet Purchase Allowances shown in Appendix I. OUT-OF-STOCK SALE The selling Dealer will receive EFT or credits equal to the sum total of the Fleet Purchase Allowances at time of delivery. (If the customer has a VIP agreement, the dealer payment system will not pay FPP. Accordingly, the VIP amount will be paid in one lump sum via a check direct to customer.) ORDERED FLEET / SOLD RETAIL The selling Dealer will be charged back the Fleet Purchase Allowance and any other Fleet off-invoice credit if the vehicle is ordered Fleet and Sold as Retail. RETAIL INCENTIVES IN LIEU OF FLEET INCENTIVES If at the time of delivery and based on the delivery location, retail incentives (including special Business Center incentives and web based e-incentives ) exceed fleet incentives, the Dealer, on behalf of Dealer Commercial Fleet Accounts (non-vip), may apply for retail incentives in lieu of FPP. Subject to Retail Program Rules, vehicles may be eligible for additional incentives, e.g., Lease Cash, Lease Loyalty, objective based programs, and local bonus programs. The sales must be reported in the NVDR system as Fleet type sales. Note: Retail Program incentives are not eligible on units ordered by fleet customers participating in Volume Incentive Programs (VIP) or Long Term Daily Rental Programs (LTDR). VIP customers who purchase vehicles Out of Stock may apply for applicable retail incentives in lieu of their approved VIP incentives. If retail incentives are applied for on out of stock purchases, no VIP/LTDR incentives will be paid. Such Out-of-Stock units will, however, count toward any VIP/LTDR volume objectives. Contact your Chrysler Regional Account Executive for VIP/LTDR program details. If electing to receive retail program incentives, the selling Dealer must claim the applicable retail program codes based on the delivering Dealer s location. When retail incentive programs are claimed on a vehicle originally ordered as Fleet, the invoice credits for the Fleet incentives will be charged back and retail incentive payments will be made via the Dealer incentive payment process. Dealers will claim retail programs via Dealer Connect or Chrysler s Direct Order Transfer (CDOT) process, using the appropriate retail program number and Fleet type sale on the Fleet NVDR screen (see Dealer Fleet Manual or refer to Dealer Connect Sales Tab/ Dealer Incentives Communications / Fleet Tab then click on NVDR Reporting for instructions). CUSTOMER PAYMENT The selling Dealer is responsible for payment of applicable allowances and incentives to the Registered Chrysler Fleet Account, unless otherwise agreed to in writing by the Dealer and Registered Chrysler Fleet Account, (See Fleet Incentive Acknowledgement Form attached). All Out-of-Stock allowances will be electronically credited to the selling Dealer after delivery and proper NVDR reporting. Retail incentives must be passed directly to the final customer. The incentive amount must be shown as a line item deduction on the buyer's order and contract price calculation. In the case of a lease, the incentive amount must be shown on the lease contract as a reduction of the capitalized cost, security deposit, and/or first payment. IN-SERVICE RETENTION PERIOD AND REGISTRATION All eligible vehicles must be registered to and retained in service by the Registered Fleet Account for a minimum of 12 months or 12,000 miles. The Registered Fleet Account is required to register and title all eligible vehicles in its name. Vehicles are to remain in the United States for the above minimum in-service retention period. Vehicles sold to Independent Leasing Companies (ILC s) are eligible for the Fleet Purchase Program, if the ILC and the end-user have a Fleet Account Number (FAN) and; (1) the ILC retains title for a minimum of twelve months, (2) the ILC sells or transfers a title to a financial institution for financing purposes only. AUDIT AND VERIFICATION OF RECORDS Chrysler maintains the right to verify reported purchases, leases and retention periods by examination of the Dealer's and Fleet Account's business records. By participating and receiving such credits and/or cash payments under this Program, the Dealer and Fleet Account agree to retain all necessary business records to support such credits and/or cash payments for at least two years following the date of any credits and/or cash payments and grants to Chrysler the right to audit such business records and charge back unsupported 2
3 Chrysler Fleet Purchase Program Rules Updated Sept 24, 2012 and improper credits or payments. All invoice credits and/or cash payments made under this Program are conditional. If, upon audit, Chrysler determines that the Dealer and/or Fleet Account has not fully complied with all of the terms and conditions of this Program, Chrysler will charge back any and all credits or payments made to the Dealer on behalf of the Registered Fleet Account or to the Fleet Account directly. The Dealer and/or registered fleet account will be notified by Chrysler s credit department of the amount due Chrysler. Payment is due within 30 days of receipt. Dealer and/or Registered Fleet Account may also be disqualified from future participation in Chrysler fleet programs. Chrysler reserves the right to determine eligibility, fulfillment, and resolve any questions or disputes arising under the Program or subsequent audits. By making application under the Program, participants thereby agree to accept Chrysler decisions, which shall be final. Chrysler in its sole discretion and without notice reserves the right to cancel, amend, or modify this Program. DEFINITIONS / EXPLANATIONS: FLEET SALE TYPES Commercial Sale (Type Sale 3) - Sale to a commercial company or individual that has a Chrysler Fleet Account Number (FAN). Fleet Lease Sale (Type Sale 5) - Sale to a registered independent leasing company with a Chrysler Fleet Account Number for a bona fide (non-brokered) lease to an End-Use Company that has a Registered Chrysler Fleet Account Number. For leases to companies or individuals not qualifying for a Chrysler Fleet Account number see Individual Lease Purchase Program. DEALER COMMERCIAL FLEET ACCOUNT Registered Fleet Accounts that do not have VIP/LTDR programs. Government Agencies, Public Utilities and Rental Accounts are not considered Dealer Commercial Fleet. Payments under this definition can include sales to small daily rental companies that do not have VIP/LTDR programs or to governments purchasing Out-of-Stock. EFT (Electronic Funds Transfer) (When applicable) Electronic payments on behalf of the Registered Chrysler Fleet Account via electronic funds transfer. This will be done via weekly Electronic Funds Transfer deposit to the selling Dealer s account based on a properly executed NVDR. END-USER - The individual or company that uses the vehicle (purchased or leased) in its normal daily activity. FLEET ACCOUNT NUMBER (FAN) The number assigned by Chrysler to the Registered Fleet Account. FLEET PURCHASE PROGRAM (FPP) - A fleet purchase incentive is designated on the vehicle invoice as a line item credit. (See Commercial, Fleet Lease Purchase Allowances in Appendix I for specific amounts). LTDR Long Term Daily Rental: Incentives negotiated between a specific customer and a Chrysler Regional Account Sales Representative. ORDERED FLEET - Any vehicle ordered with Fleet coding (see Order Placement Page 1 for correct order coding) will receive invoice credits for the Fleet Purchase Program (FPP). OUT-OF-STOCK - Any vehicle ordered for Dealer retail stock inventory and thereafter sold and reported as a Fleet Type Sale (3 or 5). QUALIFIED FLEET ACCOUNT - Any individual or company that does not presently have a Fleet Account Number (FAN) who (a) purchases and registers or leases five (5) or more vehicles (any make or model) during the current or preceding calendar year, current or preceding model year or preceding 12 month period, or (b) currently operates 15 or more vehicles (owned or leased). REGISTERED FLEET ACCOUNT - Any individual or company becomes a Registered Fleet Account by completing a Qualified Fleet Customer Enrollment Form and by establishing to the satisfaction of Chrysler that the individual or company (a) purchased and registered or leased five (5) or more vehicles (any make or model) during the current or preceding calendar year, current or preceding model year or preceding 12 month period, or (b) currently operates 15 or more vehicles (owned or leased). VIP Volume Incentive Program: Incentives negotiated between a specific customer and a Chrysler Regional Account Sales Representative. 3
4 APPENDIX I COMMERCIAL AND FLEET LEASE PURCHASE ALLOWANCES Invoice credits: The total Fleet Program incentive noted in appendix I will be paid via an invoice credit. The credit is identified as Fleet Purchase Program (FPP), see column below, 2013 Model Year Vehicles (Fleet Purchase Program 37ADF) BODY MODEL Program Allowance Dart $0 Avenger Sedan $1,500 Chrysler 200 Sedan $1,000 Chrysler 200 Convertible $1,000 Charger (excluding SRT) $1,500 Chrysler 300 (excluding SRT) $1,500 Town & Country $1,500 Journey (excluding 22D CPOS/AVP Package) $2,000 Challenger (excluding SRT) $500 Durango $1,500 Grand Caravan (excluding 29D CPOS/AVP Package) $1,000 Ram Cargo Van $1,000 Ram 1500 Regular Cab/Quad Cab/Crew Cab $1,000 Ram 2500/3500 Regular Cab/Quad Cab/Mega Cab Ram 3500 Chassis Cab (ST) Ram 3500 Chassis Cab (SLT & Laramie) Ram 4500 Chassis Cab (ST) Ram 4500 Chassis Cab (SLT & Laramie) Ram 5500 Chassis Cab (ST) Ram 5500 Chassis Cab (SLT & Laramie) Compass $1,500 Patriot $1,500 Grand Cherokee (excluding SRT) $1,000 Wrangler (All Models) $1,000 FIAT 500 $500 Approved by: Jim Sassorossi Director Chrysler Fleet Sales Approved by: Tony Tullio Controller Chrysler Fleet Operations NOTE: Chrysler Fleet Accounts may call the Chrysler Fleet Information Center ( FLEET) or consult our Fleet Website to determine current fleet allowances in effect at the time of order. Dealers may also refer to the Fleet Incentive tab in Dealer Connect. 4
5 APPENDIX II Chrysler Fleet Purchase Program Incentive Acknowledgement INSTRUCTIONS 1. When the customer takes delivery of an eligible vehicle under the Chrysler Group LLC Fleet Purchase Program, both the customer and participating Dealer must complete and sign the Fleet Account Acknowledgement Form. 2. The form must indicate only the program(s) for which the vehicle is eligible. The eligibility of each vehicle will be verified by the incentive payment process and is subject to audit according to the official program rules. 3. A vehicle sold or leased and delivered to a fleet customer by anyone who is not an authorized Chrysler Group LLC Dealer is not eligible for benefits under any Chrysler Group LLC Fleet Purchase Program. 4. Customers eligible for a Fleet allowance must indicate on the face of the Fleet Account Acknowledgement form their acknowledgement of the value received. The buyer s order must clearly indicate the cash allowance benefit. Customer payment is being the responsibility of the selling Dealer. 5. This Fleet Account Acknowledgement form must be completed at the time of delivery. Copies of the factory invoice, registration or application for title/registration, fleet buyer s order, finance contract or cash receipt(s) or original certificate, (if applicable) and printout of NVDR acceptance must be attached to this form and must be retained by the dealership. 6. Chrysler Group LLC will determine eligibility, interpretation and fulfillment of all elements of Fleet Purchase Programs, more fully set forth in the Official Fleet Program Rules. 7. All inquiries concerning this program should be made in writing to Program Headquarters. Inquiries must be made no later than 90 days after the program conclusion. No payment will be made for claims submitted 90 days after the program conclusion. 8. Multiple sales to one customer by the selling Dealer will only require this form to be completed one time for the model year. FLEET PROGRAM HEADQUARTERS Fax: FLEET INFORMATION CENTER Phone: FLEET (3533) 5
6 CHRYSLER I, the customer, acknowledge the value of the Fleet Purchase Program, and therefore I assign payment directly to the dealer. I release Chrysler Motors from any further claim or obligation for payment to me for this vehicle. 6
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