CALCULATING SHORT TERM FEES
General Information
Registrations with less than annual duration (short term) pay a short term fee which consists
of a percentage of the prorated total for the term, plus a
flat fee of
$11.00
.
The percentage is based on the number of days in the term and calculated to the nearest dollar.
From the following chart, use either the "Percentage Charged" or the "Converted Percent" when
calculating the Finance fee. The rates for the percentage charged is effective
01Jan2022.
| Term in Months |
Term in Days |
Percentage Charged |
Converted Percent |
|
11
|
330 - 364
|
0.30%
|
0.0030
|
|
10
|
300 - 329
|
0.60%
|
0.0060
|
|
9
|
270 - 299
|
0.90%
|
0.0090
|
|
8
|
240 - 269
|
1.30%
|
0.0130
|
|
7
|
210 - 239
|
1.60%
|
0.0160
|
|
6
|
180 - 209
|
1.90%
|
0.0190
|
|
5
|
150 - 179
|
2.40%
|
0.0240
|
|
4
|
120 - 149
|
2.50%
|
0.0250
|
|
3
|
89 - 119
|
2.80%
|
0.0280
|
|
2
|
60 - 88
|
3.10%
|
0.0310
|
|
1
|
27 - 59
|
3.40%
|
0.0340
|
Example
Customer is registering a vehicle on
October 23, 2008
to expire
June 4, 2009
Annual fees are $68
and $465
insurance premium*. Use the prorate wheel to determine the prorate factor and number of days in the term.
Total annual fees of $533
prorated for a term of 225 days is
328.54 or rounded up = $329.
($533.00 X .6164 = $329.00).
Multiply $329.00 times the Percentage Charged of 1.30% of the Converted Percent of .0130.
Result is 4.277 rounded to $4.00.
($329 X .0130 = 4.277 or $4.00)
Add the flat fee of $11.00 to this to calculate the total finance fee of $15.00.
($4.00 + $11.00 = $15.00)
This is then added to the total prorated amount to calculate the amount charged to the customer
of $344.
($15.00 + $329.00 = $344.00)
*Note: this is the insurance premium after applying the "U-drive" Surcharge of the "Farm Located"
discount and then any RECOGNITION calculation.
|