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.

Floor plan for used car dealers.

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. 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. Car bucks was designed for you. There s never been an easier way.

Our floor plans offer quick cash flow great terms and no curtailments. Floor cars for up to. How does floor plan financing work specifically to benefit auto dealers. A one percent rate increase can raise some dealership costs by millions of dollars.

Let s say you make a profit of 3 000 per car sold. The dealer then receives payment hopefully including a profit and remits the balance to. Carbucks provides floor plan financing to independent auto dealers for the purchase and holding of their inventory. What you don t realize is that like most new car dealers a floor plan was used to finance the cars.

Monday friday 8 30 5 30 est. We finance independent dealers with a long term floor plan that has no curtailments for maximum cash flow up to 180 days. 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.

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. No curtailments or audit fees.