Floor Plan Financing Used Car Dealers

Floor cars for up to.

Floor plan financing used car dealers.

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. Floor plan finance companies are uniquely attuned to the needs of auto dealers. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. There s never been an easier way.

Local dealerships purchase their inventories through financing called floor plan lending here s how it works. 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. How does floor plan financing work specifically to benefit auto 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.

Keep it with car bucks. No curtailments or audit fees. 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. The dealer then receives payment hopefully including a profit and remits the balance to.

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. Monday friday 8 30 5 30 est. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. Let s say you make a profit of 3 000 per car sold.