When you run a dealership, time is your most valuable resource. Finding and acquiring vehicles to stock your lot, attending to customers, not to mention the paperwork required for these activities, can take up a lot of time. When there are limited hours to complete a variety of tasks, the most valuable use of your time is to focus on the activities that contribute most to your bottom line. Though many dealers initially floor plan vehicles for additional cash flow flexibility, a secondary benefit is that many floor planning dealers find they have the ability to save time and effort on a number of tasks.
Though many dealers initially use their line of credit for additional cash flow flexibility, a secondary benefit is that many floor planning dealers find they have the ability to save time on a number of tasks. For example, cash-buying dealers often have to take additional steps and keep track of more paperwork at auction to ensure their new inventory is properly purchased. With a floor plan, dealers simply bid and put the unit on their line of credit.
Holistic View of Floor Planned Vehicles
It can be tough to track how long a vehicle has been on a dealer’s lot, especially for larger dealers with large volumes of inventory. Too much aged inventory can seriously deplete a dealer’s potential profitability. Though many dealers have their own processes and methods to keep track of specific vehicles, floor planning dealers often have a quick, simple view of their floor planned inventory through their account management platforms.
Additionally, dealers frequently use the terms of their auto dealer floor plan to their advantage. That first floor plan payment often triggers an evaluation of whether or not a unit was a good buy, or if alternate inventory exit strategy plans need to be put into action.
Spend Less Time on Titles
The constant churn of buying and selling cars means that dealers have the revolving responsibility to manage titles for a variety of different vehicles. Though dealers need to have a process in place to handle titles, dealers that floor plan vehicles are often able to offset a wide variety of title management tasks. Additional title work from select states can also often be requested, leaving dealers free from an afternoon at the local branch of the DMV.
Dealers have enough to do without spending time doing busywork. Get back to business and spend time on the activities that matter most to your bottom line with a floor plan line of credit. Apply now, or contact us for more information about what a floor plan could do for your dealership.