The more vehicles a dealer can stock on their lot, the more opportunities there are to make a sale, and ensure profitability. However, that task can be difficult if dealers are relying on their own funds and gut to keep their lot stocked with good inventory. With a floor plan, car dealers have the ability to buy more inventory, and have the data to back up if those vehicles were a good buy.
Buy More Inventory
The key benefit of a floor plan line of credit is that dealers can stock their lots with needed inventory without using their savings on hand. With more inventory in stock, dealers have more opportunities to make sales.
Additionally, by using a floor plan, dealers have improved cash flow. Improved cash flow allows dealers the ability to make decisions tailored towards long-term success rather than just making sure the next bill is paid.
Confirm You Buy Right
Dealers make margins with a good buy, not necessarily once the car sells to a consumer. Most dealers have an idea of an optimal acquisition price for the vehicles they’d like to stock on their lots. One key way to get confirmation that you’re making a good buy is to look at similar vehicle data. For NextGear Capital dealers, it’s simple, free and easy to confirm if you’ve made a good buy right from Account Portal.
Within Account Portal, dealers can check estimated values across a few different valuation methodologies. Dealers can type in a vehicle VIN number, adjust a few other select values, and receive individual estimated Manheim Market Report and Kelley Blue Book values. As an added bonus, Account Portal also offers a NextGear Capital estimated valuation.
More data gives dealers the confidence to buy right, and the extra cash flow flexibility gives dealers the ability to purchase vehicles without using dealership savings. Have questions about how a floor plan can work for your dealership? Apply, contact us or reach out to your local representative.