How To Get A Floor Plan For Cars

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Used inventory should be turned every 45 days because your ability to make money on aged inventory goes down over time.

How to get a floor plan for cars. No curtailments or audit fees. Keep it with car bucks. There s never been an easier way. You may obtain a dealer floor plan from a bank or there are many dealer floor plan providers listed by clicking here.

Floor plan finance companies are uniquely attuned to the needs of auto dealers. 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. In this situation you would need to stock 80 units based on 60 desired sales per month and a 40 day average turn time. The nationwide industry standard process is called floor plan lending and it works like this.

Monthly desired sales divided by how many times your lot is turned per year multiplied by 12. This floor plan finance formula is essentially the following. Floor planning is a basic process. 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. Contrary to common perceptions most car dealers do not pay cash for the. Afs is accepted at all manheim and adesa auto auctions across the country. Our floor plans offer quick cash flow great terms and no curtailments.

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. A dealer floor plan is a loan for your vehicle inventory. Open a line of credit purchase inventory with that credit sell inventory and pay back the loan.

Floor planning is commonly used in new and used car dealerships. 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 purchase their inventories through financing called floor plan lending here s how it works. 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.

Buy in proportion to your sales figures. Floor cars for up to 180 days for maximum cash flow. The answer is fairly simple. 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.

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