Floor Plan Financing Used Car Dealers

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.

Floor plan financing used car dealers.

Call or apply now 864 234 9696. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. Floor plan finance companies are uniquely attuned to the needs of auto dealers. 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.

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. 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. Local dealerships purchase their inventories through financing called floor plan lending here s how it works. Let s say you make a profit of 3 000 per car sold.

Acquiring a floor plan before lending funds floor plan financing companies will often ask dealers to provide additional information and documentation to verify dealership details. Though dealership savings can be used to purchase inventory one of the simplest means of acquiring inventory is using floor plan financing for used car dealers. No curtailments or audit fees. There s never been an easier way.

The dealer then receives payment hopefully including a profit and remits the balance to. Keep it with car bucks. Monday friday 8 30 5 30 est. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability.