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Dealer Floor plans?
Do we have a source for floor plans for auto dealers?
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4 Replies
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Per Dianne, as of this time, no auto floor plan. Something we can work on
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Spoke with Dianne Burnett was told in about 90 days.
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Correct. Auto floor plans are not yet offered by Lending Network LLC at this time.
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Dealer floor plans help auto dealers, enabling them to turn over and manage their stocks without large upfront cash injections. In this article, you will learn more about the workings of dealer floor plans and some alternatives available to auto dealers.
What is a Floor Plan?
A floor plan is a type of revolving credit that a car dealer uses to purchase cars. This enables the purchased vehicles to be paid for over time rather than all at once—payment can be made as the car is sold. The credit card model is a classic example.
Advantages of Dealer Floor Plans Expansion of Inventory: This allows auto dealers to increase their inventory of vehicles. Therefore broadening their market reach and sales opportunities.
Improved Cash Flow: Floor planning enables dealerships to have more cash flow since they do not have to lock large amounts of money into inventories.
Creative Financing Packages: Many floor plans lenders provide lines of credit, interest rates, and terms that are standard for the industry but can be customized to the dealership’s needs.
Key Considerations
Interest Rates: Even though floor plans are more convenient, they are usually associated with elevated interest rates, so dealers must utilize their stock and cash flow well to avoid taking on liabilities.
Private Mortgage Insurance (PMI): Some lenders are keen on having PMI, an additional fee in a loan to the rest of the financing.
Inventory Turnover: Dealers should target a low inventory period and quick inventory turnover to reduce interest and increase the profit available.
Options Among them include:
NextGear Capital: It offers low-rate floor financing, enabling dealers to stock more vehicles without spending much money.
ACV Auctions: They offer low interest rates and loan latitudes to their clients, and as aides, they focus on dealership inventory control techniques.
Kinetic Advantage: Assist independent dealerships with funding options and promote superior customer service.
Overall, dealer floor plans are indispensable finance tools for automobile dealers focused on operational cash management and effective inventory strategies. The right finance provider will transform the dealer’s operations and improve the chances of making sales.