How To Get A Floor Plan For Cars

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.

How to get a floor plan for cars.

How does floor plan financing work specifically to benefit auto dealers. Get the range of inventory that will turn visitors into buyers with afc s automotive inventory financing programs. It is a plan to finance the vehicles on your floor. Floor cars for up to 180 days for maximum cash flow.

A dealer floor plan is a loan for your vehicle inventory. Buy in proportion to your sales figures. There s never been an easier way. We can even floor your trade in vehicles and purchases from other independent auctions as well as vehicles purchased from other dealers and new car dealerships.

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. Open a line of credit purchase inventory with that credit sell inventory and pay back the loan. Contrary to common perceptions most car dealers do not pay cash for the. Local dealerships purchase their inventories through financing called floor plan lending here s how it works.

Floor planning is commonly used in new and used car dealerships. Retail floor planning also referred to as floorplanning or inventory financing is a type of short term loan used by retailers to purchase high cost inventory such as automobiles these loans are often secured by the inventory purchased as collateral. You may also go to google bing or yahoo and type in dealer floor plan providers. Based upon what the car dealer thinks will sell the best the new car dealer places its new car orders with the manufacturer.

Use your afc line of credit to purchase customer trades dealer to dealer transactions and inventory acquisitions made from auctions leasing companies and other sources. This floor plan finance formula is essentially the following. Our floor plans offer quick cash flow great terms and no curtailments. The first thing to note about our floor plan financing is how versatile it is.

In this situation you would need to stock 80 units based on 60 desired sales per month and a 40 day average turn time. Floor planning is a basic process. Monthly desired sales divided by how many times your lot is turned per year multiplied by 12. No curtailments or audit fees.

Used inventory should be turned every 45 days because your ability to make money on aged inventory goes down over time. The answer is fairly simple. You may obtain a dealer floor plan from a bank or there are many dealer floor plan providers listed by clicking here. Keep it with car bucks.