For example a dealer might be able to borrow 10 million over the year to purchase 300 new cars.
Auto dealership floor plan financing.
In addition to freeing up the cash a dealer has on hand other floor plan financing benefits can include extra flexibility in terms of paying off a particular piece of inventory payment extensions and credit increases if.
It frees dealerships to build their inventory without tying up the funds they may need for other operational expenses.
Floor plan lenders include local and regional banks large national banks and financing companies owned by the manufacturing companies like toyota financial or ford credit.
For example automobile dealerships utilize floor plan financing to run their businesses.
These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability.
Let s say you make a profit of 3 000 per car sold.
Floor plan statements and inventory information available online.
Dcg capital has helped numerous new car dealers acquire floor plan loans getting customers the best terms and conditions while providing a stunning inventory increasing sales and expanding their legacies.
Contrary to common perceptions most car dealers do not pay cash for the.
What you don t realize is that like most new car dealers a floor plan was used to finance the cars.
Auto dealerships need to keep their showrooms and lots stocked full of inventory and to do that they need a certain level of financial flexibility.
The loans are often made with a one year term and based on an aggregate budget.
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.
Floor planning is commonly used in new and used car dealerships.
Variety of floor plan structures and interest rate options to meet your needs and reduce your interest expense.
The dealer then receives payment hopefully including a profit and remits the balance to.
So you need floor plan financing that will infuse your automotive dealership with new cars without terms that could prove difficult down the road.
New and used vehicle floor plan financing at competitive rates and terms focused on meeting the needs of new car franchised dealerships.
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.
That s what makes floor plan financing so invaluable.
City auto finance is a locally owned and operated floorplan company dedicated to providing unparalleled customer service and meeting the unique financial needs of used car dealers in the mid south.
