Contrary to common perceptions most car dealers do not pay cash for the.
Manufacturer flooring finance dealers.
Retail floor planning also referred to as floorplanning or inventory financing is a type of short term loan used by retailers to purchase high cost inventory such as automobiles these loans are often secured by the inventory purchased as collateral.
Bdo leasing provides a revolving short term credit and financing facility mainly to vehicles and transport dealers in order to finance their purchase of inventory assets mainly motor vehicles trucks and heavy equipment from manufacturers.
In industry parlance this is known as captive financing in which a manufacturer s financing arm ford motor credit for example will finance the dealer s new inventory.
The loans are often made with a one year term and based on an aggregate budget.
For example a dealer might be able to borrow 10 million over the year to purchase 300.
Dealers can also take advantage of the most competitive floor plan inventory insurance programs in the nation.
Terms of these captive facilities are similar in many ways to floor.
Flooring loans to purchase homes from manufacturers our programs allow you to finance up to 100 of the factory invoice.
Simply it is a way for an auto dealer to use a.
You may wonder how much the dealer had to spend to provide you with almost limitless choices.
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.
Go to any large auto dealer and there are hundreds of cars on the lot.
Floor plan finance companies are uniquely attuned to the needs of auto dealers.
Use our programs to finance the construction of customer sold homes placement of a spec home in a park or even put models on a sales center.
To learn more about our dealer floor plan financing program call us at 1 800 522 2013 ext.
What you don t realize is that like most new car dealers a floor plan was used to finance the cars.
Floor stock financing will ensure that you as the client dealer has inventory in place when sales.
Floor planning is commonly used in new and used car dealerships.
How does floor plan financing work specifically to benefit auto dealers.
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