The Dream Builder Advantage (“DBA”) Program with Exchange New Car Sales (“ENCS”) is setup to help you save money—specifically for a new vehicle. This program was put in place with the intentions on you purchasing a vehicle through ENCS rather than going Stateside and 1) getting a better deal or 2) the exact car you want whether it be used or a vehicle they don’t offer.
Setting Up With The Dream Builder Advantage Program
Once you setup a DBA with ENCS, your money is put into a bank account in which you’re not allowed to touch unless you go in and see your Independent Sales Representative to request a draw (some cash out of that account) or to cancel (and receive a full refund). Though, I have personally witnessed someone who “cancelled” their account and still have $300 in their account months later (the Independent Sales Representative had the customer do a DBA withdraw until the balance of $300 so that they may try to sell them at a later date—this is a despicable practice to do).
Canceling Your DBA With Exchange New Car Sales
When going in to cancel, if you have above $300 in your account (the minimum deposit needed to purchase a vehicle), the ISR will try to sell you on a vehicle with selling you the fact that you will have 7.5% interest towards your vehicle (up to $500, so it will cap out at $6667 in savings) if you continue saving. To avoid the sales pitch over and over, cut out the middle man: the ISR. Attached at the bottom is a form that you can print out and send directly to New York to get your money back in full.
The ENCS DBA Alternative
Here is the alternative to a DBA: Navy Federal Credit Union.
They have a great Certificate of Deposit (“CD”) setup called the “Easy Start Certificate”. This CD offers you 3% interest on the money you put in it with a minimum of deposit of $50 and a $15 deposit each month.
Let’s calculate that into a small picture. Over the course of 2 years at an initial deposit of $50 and depositing $15 per month, you will leave your 2 year overseas tour with $423.63. That is $410 of your own money and $13.63 earned in interest (if you pull it out monthly rather than redeposit the interest earned).
This is what I personally did, I created an Easy Start Certificate to demonstrate to you that “money earns money” with an initial deposit of $300 and $15 a month deposits. After one month (as seen below) with my own money of $315, I earned $0.46 cents which I kept in the certificate to earn more money on.
Below is an example of my second months earnings with an initial deposit of $300 and $15 a month automatic deposits (the minimum). I was able to earn $1.25 in interest in just two months on less than what 1 months COLA would be.
May 13th, 2012—Last Update
For my third month I am going to sum up what I did to date with my EasyStart Certificate through Navy Federal Credit Union which is actually a far better alternative than using Exchange New Car Sale’s Dream Builder Advantage (“DBA”) program in order to save money—for a car—or anything for that matter.
I originally deposited $300 as well as the minimal monthly amount of $15 thereafter. This happens to currently be $345 of my money. I’ve gained $2.05 in interest (a lot more than you will in the event you setup a DBA with ENCS / Navy AutoSource if you decide against an over-priced vehicle with all the current warranties and aftermarket products put on to your order without you knowing).
At this stage, if I chose to cancel, I would walk away with 100% of my own cash: $345. Although, I don’t intend on cancelling just yet. I want to benefit from the 3% interest for the remaining 9 months and receive the most from my investment prior to it rolling over into another EasyStart with a reduced interest rate by putting more than the bare minimum to ensure that I can walk away a lot richer than $2.25.
Nevertheless, if I changed my mind the following month for reasons unknown and made the choice to withdraw my money, I would get to keep all of the money I saved along with all dividends earned. (Refer to this comment that describes the Navy Federal EasyStart Certificate in more detail)
On this test run using the EasyStart Certificate in order to show you how easy it is in order to save without having the support of an individual apart from a bank teller handling your hard earned money. My small investment made it possible for me to make money without any burden of seeing a sales agent to talk about an automobile or motorcycle purchase (that will be way over priced with the “ENCS Owner’s Protection Plan”—also commonly referred to as an Extended Warranty automatically “included in your investment”) or the hassle of getting my cash back by going through an Independent Sales Representative as ENCS isn’t a bank so you cannot just walk in and withdraw your savings on the spot—though it is possible to skip the middle man (sales agent) because they will try their hardest selling you a vehicle before supplying you with the Dream Builder Advantage cancellation form.
My suggestion for you is that if you’re not 100% sure at this time that you would like to get a new automobile before departing your present duty station and benefit from the small savings on your vehicle; which won’t be considerable simply because that will only cover 1/3rd of the price for the Extended Warranty (if that), then begin using a CD through any traditional bank (NFCU recommended if you are already a member).
Below is a snapshot of my account as an example of how money makes money.
Now, this is a small picture. Let’s go big. Assume you put in an initial deposit of $200 and half of your COLA ($230) per month. You will have saved $2960 and you will earn $44.35 in interest occurred over the first year maxing out at the 3% interest (as it is only 3% interest up to $3000).
After that, you open a second CD (“Custom Club® Account”) and deposit the $7.50 a month earnings from your Easy Start Certificate into that account with an initial deposit of $500 and raise the bar to $407.50 a month in deposits over the next year of your tour.
In your Custom Club® Account, you will have $5445.16; $5390 being your own money and $55.16 being interest.
You will have saved a total of $8350 of your own hard earned dollars over a course of 2 years and as a pat on the back; Navy Federal Credit Union will award you with nearly $100 in interest.
What if you were to save $8350 through ENCS? You will have $8350 and $500 towards your vehicle when you make the purchase of your desired car, truck or Harley-Davidson. If following the tips on this website and removing the Extended Warranty and aftermarket products, you will get an excellent deal on a vehicle.
Now, if you decided to cancel the Dream Builder Advantage and withdraw all your money because you found a better deal Stateside or there is nothing ENCS has to offer you at the time that you want, you will have a check for only $8350. Where did your $500 go? You don’t get it. You get 100% of the money you put back into it.
It is better to save on your own through a CD with Navy Federal Credit Union (or any other bank with a similar CD plan) to make a purchase or make the decision not to buy a new vehicle as you will walk away with $100 in your pocket either way.
But it’s so easy to setup a DBA with ENCS! You just login to MyPay and input the numbers. Well, it’s even easier to setup an Easy Start Certificate on NavyFCU’s website by logging in and going to Account Services > Open a Certificate. If you don’t have access to the internet or it is hard to understand exactly how to set it up, I will be willing to help you if you contact me or reply to this post and I’m sure a NavyFCU representative will help you as well if you go in personally.
Saving this way as opposed to a DBA with Exchange New Car Sales sets you up for success in the long run because it will teach you how to manage your money better rather than having an Independent Sales Representative watch and wait for you to get closer to your PCS date and try to sell you a base vehicle fully loaded with the Extended Warranty and aftermarket products they have to offer.
DBA CANCELLATION FORM, mail it to the address at the bottom of the form. If you do not know your customer number, include some personal information in the “reason” box such as your daytime telephone, address, last 5 digits of your Social Security Number, etc.
To find out more about interest and play around with numbers before opening a CD, use this Compounding Calculator.
May 13th, 2012: This is my last revision for the Dream Builder Advantage Program Alternative till the time comes when I have a substantial amount of dividens earned to show you from my EasyStart. At this moment, the choice is yours to make a decision on the way you would like to save your money. In case you have any questions or feedback, please feel free post a comment or make use of the contact page to get hold of me directly.
Dream Builder Advantage
Certificate of Deposit
Custom Club and EasyStart are registered trademarks of Navy Federal Credit Union.