Dealerships rely on a constant stream of inventory to stock their lots. 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.
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. Documentation will often include items such as a completed credit application, dealer license details and current financials. These materials give a floor plan company a cursory overview of basic dealership information, and help determine a dealer’s funding limits.
Have dealership documentation organized and accessible when applying for a floor plan line of credit. Dealers that have easily accessible documentation will often find the floor plan approval process is swift, and straightforward.
Using Floor Plans
Once approved for a floor plan line of credit, dealers can start using their new funds to purchase inventory through both auction and non-auction channels, depending on the capabilities of the floor plan provider.
Floor planning vehicles at auction is typically fast and easy through your chosen floor plan partner’s account management platform. These platforms let dealers manage their accounts anywhere, anytime, from a computer or mobile phone, with dashboards that present pertinent information about current credit.
Additionally, many floor plan providers have the ability to handle back-end operations after an inventory purchase. For example, floor planning dealers don’t necessarily have to worry about titles, since they’re sent directly from the auction to the floor plan company.
Expanding Your Dealership
Using a floor plan to purchase inventory gives dealers needed buying power and cash flow to use dealership savings for other expenses. When dealership funds aren’t tied up in inventory, those savings can go towards hiring more staff, getting additional operational tools or marketing vehicles to sell.
With the buying power and additional cash flow provided by floor plan financing for used car dealers, dealers can save time from reduced administrative tasks, the funds to purchase inventory, and get the chance to really focus on their customers.