Car Financial Floor Plan

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.

Car financial floor plan.

With more than 25 years of proven experience behind us you can be sure that car financial will be here for your business providing a stable source of funding and reliable service today and tomorrow. Let s say you make a profit of 3 000 per car sold. Dealers can then use their floor plan line of credit to purchase inventory from auctions and other inventory sources. Car financial is dedicated to serving the individual needs of automotive dealers and automotive non prime financial organizations like yours.

Floor planning is a type of inventory financing for large ticket retail items. If your holding cost per day per unit is 44 63 and your turn time is 60 days you will spend 2677 of your profit holding on to a non selling car. Car financial services has focused the floor plan product specifically on the needs of the sub prime and bhph dealer market. Simply it is a way for an auto dealer to use a lender s funds to finance the cars and until each of them is sold the lender holds title to the cars.

Floor planning is commonly used in new and used car dealerships. If a dealer purchases a car on a floor plan takes it back to their lot and it doesn t sell within a contractually determined number of days dealers are charged a small fee. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. These loans are often secured by the inventory purchased as collateral.

With more than 120 locations afc is one of the largest floorplan providers in north america and offers unmatched local access and customer service. Car targets an asset class that is often times overlooked by the larger floor plan companies. 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 a dealer might be able to borrow 10 million over the year to purchase 300 new cars.

Div id ember416 class ember view nav id head all class ember view navbar navbar default div class container fluid div class navbar header main bs. Much like a credit card a floor plan financing company extends a line of credit to a car dealer. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. Retailers use a short term loan to purchase inventory items and the loan is repaid as inventory is sold.