How To Get A Floor Plan For Cars

This floor plan finance formula is essentially the following.

How to get a floor plan for cars.

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. Contrary to common perceptions most car dealers do not pay cash for the. 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.

You may obtain a dealer floor plan from a bank or there are many dealer floor plan providers listed by clicking here. Open a line of credit purchase inventory with that credit sell inventory and pay back the loan. Floor planning is a basic process. The first thing to note about our floor plan financing is how versatile it is.

Monthly desired sales divided by how many times your lot is turned per year multiplied by 12. A dealer floor plan is a loan for your vehicle inventory. Based upon what the car dealer thinks will sell the best the new car dealer places its new car orders with the manufacturer. Floor plan finance companies are uniquely attuned to the needs of auto dealers.

How does floor plan financing work specifically to benefit auto dealers. It is a plan to finance the vehicles on your floor. Get the range of inventory that will turn visitors into buyers with afc s automotive inventory financing programs. Buy in proportion to your sales figures.

Floor cars for up to 180 days for maximum cash flow. Keep it with car bucks. 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. The nationwide industry standard process is called floor plan lending and it works like this.

Afs is accepted at all manheim and adesa auto auctions across the country. 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. There s never been an easier way. The answer is fairly simple.

Used inventory should be turned every 45 days because your ability to make money on aged inventory goes down over time. In this situation you would need to stock 80 units based on 60 desired sales per month and a 40 day average turn time. Local dealerships purchase their inventories through financing called floor plan lending here s how it works. 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.