Running a dealership of any size can be hectic, and any time savings are valuable. For the most part, auto dealers primarily start using a floor plan to use dealership savings for other expenses and to help improve overall cash flow. However, one of the auxiliary benefits of floorplanning cars are overall time savings. By using a floor plan, dealers have the opportunity to get more time back in their day in a few key areas.
Fewer Administrative Tasks
Dealers that purchase inventory with savings continually have to follow up on checks clear, and any additional paperwork associated with those purchases. With a floor plan, it’s simple to bid, buy and pay for inventory. After winning a bid, a floor planning dealer will essentially just tell the auction to put their vehicle purchases on their line of credit. Beyond transporting inventory back to a dealership lot, that’s all a dealer has to do!
Simplified Title Management
Managing titles is a daily task for a majority of dealers. After buying a vehicle with dealership savings at auction, dealers often have to take additional steps to ensure titles are handled. Floor planning dealers have the advantage of a partner that manages titles on their behalf. As a bonus, depending on the dealership’s state, additional title work can be requested.
Assistance Tracking Aging Inventory
One of the top detractors of overall dealership profitability is aging inventory. The longer a car stays on a dealer’s lot, the more it depreciates and the more resources are spent to keep the vehicle on the dealership lot. If vehicles sit for too long, they can cease to become profitable for dealers.
With a floor plan, the small, periodic payments on a particular unit will often serve as a reminder to dealers put additional focus on selling that vehicle, or taking it through an inventory exit strategy.
When time is your most valuable resource, don’t exhaust it on activities that don’t contribute to your bottom line. Apply for a line of credit or reach out to one of our representatives to learn more about how floorplanning cars can help you save time.