Search results
Results from the WOW.Com Content Network
What is a Dealership Floor Plan? A dealership floor plan loan is essentially a revolving line of credit. Like a credit card, you can charge large purchases to the floor plan and pay them off at the end of the month. A floor plan lets dealerships finance vehicles without fronting the cash.
Auto dealer floor plan financing is a specialized form of vehicle inventory financing that enables independent car dealerships to access the capital they need to purchase and stock their lots. With floor planning, dealerships can acquire a wide selection of vehicles, making them readily available for customers to test drive and purchase.
What are automotive floor plans? The terms “floor plan” and “floor plan financing” get thrown around frequently in dealership and auction circles and are often a preferred form of financing for independent dealers. But what are they? Automotive floor plans act similarly to a credit card.
Car dealership floor plans ensure that a dealer has the capital needed to purchase inventory, and frees up cash to pay for other expenses, such as facility upgrades. Floor plans ensure cash isn’t eaten up by depreciation, and dealers don’t have to spend extra time at auction or waiting for checks to clear.
In the automotive industry, a floorplan (or floor plan) is a type of loan available through a finance company that provides a revolving line of credit, allowing an automotive dealer to obtain financing to purchase inventory.
Floorplan financing is simply a way in which auto dealers use lenders’ money to finance their inventory. In this arrangement, the dealer comes up with a big selection of vehicles that customers can drive straight off the lot if they want to.
What is floor plan financing? Floor plan financing allows auto dealers to use a lender's money to finance their inventory. The dealer emerges from the arrangement with a large selection of vehicles customers can drive straight off the lot should they please.
Within the auto industry, floor plan financing allows car dealerships to buy and sell vehicles quickly without worrying about disruptions to cash flow. Here’s the basic idea: A dealership receives a short-term loan or revolving line of credit from a floor plan financing company like Floorplan Xpress.
It’s no secret that the best dealer floor plan companies can help dealerships optimize their cash flow, streamline inventory management, and ultimately improve their bottom line. However, with so many options available, it can be challenging to know which provider is the best fit for your dealership’s needs.
Beginning to purchase your inventory using dealer floorplan financing (which you may have also seen called “floor plan financing”) can be a major step for a dealership. So what should a dealer be thinking about before flooring their first vehicle?