Floor Plan Financing Used Car Dealers

Acquiring a floor plan before lending funds floor plan financing companies will often ask dealers to provide additional information and documentation to verify dealership details.

Floor plan financing used car dealers. How does floor plan financing work specifically to benefit auto dealers. Simply it is a way for an auto dealer to use a lender s funds to finance the cars and until each of them is sold the lender holds title to the cars. Though dealership savings can be used to purchase inventory one of the simplest means of acquiring inventory is using floor plan financing for used car dealers. Let s say you make a profit of 3 000 per car sold.

Our floor plans offer quick cash flow great terms and no curtailments. No curtailments or audit fees. Local dealerships have a better sense than anyone what vehicles will sell best in their markets cars or trucks suv s or compacts sports cars luxury cars or more affordable models. There s never been an easier way.

Monday friday 8 30 5 30 est. If your holding cost per day per unit is 44 63 and your turn time is 60 days you will spend 2677 of your profit holding on to a non selling car. Floor plan finance companies are uniquely attuned to the needs of auto dealers. The dealer then receives payment hopefully including a profit and remits the balance to.

These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. Call or apply now 864 234 9696. Using cash or a bank line of credit to purchase inventory can work for some car dealers but many floor plan financing companies offer a variety of dealer specific benefits. Local dealerships purchase their inventories through financing called floor plan lending here s how it works.