Floor Plan For Used Car Dealers

The dealer then receives payment hopefully including a profit and remits the balance to.

Floor plan for used car dealers.

These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. 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. Keep it with car bucks.

But because inventories are so immense the car business is very sensitive to both floor plan interest rates and the tax treatment of interest expenses. Floor cars for up to. We finance independent dealers with a long term floor plan that has no curtailments for maximum cash flow up to 180 days. 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.

A one percent rate increase can raise some dealership costs by millions of dollars. Carbucks provides floor plan financing to independent auto dealers for the purchase and holding of their inventory. Let s say you make a profit of 3 000 per car sold. Floor plan finance companies are uniquely attuned to the needs of auto dealers.

Call or apply now 864 234 9696. How does floor plan financing work specifically to benefit auto dealers. Monday friday 8 30 5 30 est. Car bucks was designed for you.

Floor plan loans are among the safest of all financial instruments. 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.